Question

During a period, Department A finished and transferred 50,000 units to Finished Goods. In addition, 10,000 units were started but brought only to a stage of being 20% complete as to Direct Labor and Overhead. Overhead of $13,000 was allocated to Department A during the period. Using the weighted average method, compute the Equivalent Units of Production (EUP) for Direct Labor and Overhead for the period, the Cost per EUP for Overhead, and the amount of Overhead allocated to the ending Goods in Process Inventory (GIP). Direct Labor & Overhead EUP Overhead Cost per EUP Overhead Allocated to GIP Assume the following data: Beginning Goods in Process Inventory Units Started and Completed Ending Goods in Process Inventory 5,000 units (3/4 complete) 15,000 units 6,000 units (1/2 complete) If materials are added when the production process begins and direct labor is applied uniformly through- out the process, what are the equivalent units of production (EUP) for direct materials and for direct labor, respectively, using the weighted average method? EUP - Direct Materials EUP - Direct Labor

Cannot figure out the correct steps to complete

Answer 1

Answer :1

Direct Labour & Overhead EUP = Total Units in progress at the End X Degree of Completion

= 10,000 units X 20% = 2,000 Units

Overhead cost per EUP = Total Overheads / (Total Finished Goods + EUP at the End)

= $ 13,000/ (50000+2000)

= $ 13,000/52000

Overhead cost per EUP = $ 0.25 Per EUP

Overhead Allocated to GIP = Allocated Overhead Cost per EUP X EUP in Progress at the End

= 2000 units X $ 0.25

Overhead Allocated to GIP = $ 500

Answer :2

EUP Direct Material = Goods in process at end X Degree of Completion

EUP Direct Material = 6000 Units X 100%

EUP Direct Material = 6000 Units

Note :Degree of completion 100% Because all the material was added at Beginning of production.

EUP Direct Labour = Goods in process at end X 1/2

EUP Direct Labour = 6000 Units X 1/2

EUP Direct Labour = 3000 Units

Note : 50% Degree of completion Because labour was applied uniformly.

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