Question

Requirement 2 Change all of the numbers in the data area of your worksheet so that it looks like this 3 Data 4 Beginning work in process inventory: 5 Units in process 6 Completion with respect to materials 7 Completion with respect to conversion 8 Costs in the beginning work in process inventory: 9 10 Conversion cost 11 Units started into production during the period 12 Costs added to production during the period 13 Materials cost 14 Conversion cost 15 Ending work in process inventory: 16 Units in process 17 Completion with respect to materials 18 Completion with respect to conversion 800 85 % 60% Materials cost S31,078 S34,840 17,600 $798,842 $1,549,940 500 60% 80 % If your formulas are correct, you should get the correct answers to the following questions. (a) What is the equivalent units of production for materials? Equivalent units of production for materials 17,720 (b) What is the equivalent units of production for conversion? Equivalent units of production for conversion $18,020

Answer 1

Solution	Calculation as per weighted average method
1	Summary of Physical Units and Equivalent Unit calculation
	Units to account for
	Beginning Inventory	800
	Units started during the period	17,600
	Total units to account for	18,400	(800+17,600)
	Total units accounted for
	Units completed and transferred out during May	17,900	(18,400-500)
	Ending-Work in process (In units)	500
	Total units accounted for	18,400
2	Equivalent units of production-Weighted average method
				(unit*% Material)		(unit*% Conversion)
		Units	% Material	EUP-Material	% Conversion	EUP-Conversion
	Units completed and transferred out	17,900	100%	17,900	100%	17,900
	Ending-Work in process (In units)	500	60%	300	80%	$                      400
	Equivalent Units of conversion			18,200		18,300
3	Cost per Unit		Material		Conversion	Total
	Cost of beginning work in progress		$                 31,078		$                 34,840	$                 65,918
	Cost incurred during the current period		$              7,98,842		$           15,49,940	$           23,48,782
	Total Cost	Cost	$              8,29,920	Cost	$           15,84,780	$           24,14,700
	Equivalent Units of production	EUP	18,200	EUP	18,300
	Cost per Unit	(Cost/EUP)	$                   45.60	(Cost/EUP)	$                   86.60
4	Cost assignment and reconciliation	aa	bb	aa*bb
		EUP	Cost per EUP	Total Cost
	Cost transferred out
	Direct material	17,900	$                 45.600	$              8,16,240	(17900*45.60)
	Conversion Cost	17,900	$                 86.600	$           15,50,140	(17,900*86.60)
	The total cost of units transferred out			$           23,66,380
Answer:
a.	Equivalent units of production for material	18,200	Units
b.	Equivalent units of production for conversion	18,300	Units
c.	Cost per equivalent unit for material	$                   45.60
d.	Cost per equivalent unit for conversion	$                   86.60
e.	Cost of units transferred out	$           23,66,380