How would I solve this? Required information The following information applies t
ID: 2333223 • Letter: H
Question
How would I solve this? Required information The following information applies to the questions displayed below] 10,000 units during November. The following production activity unit and cost information refers to the assembly iberg Company has two manufacturing departments, assembly and painting. The assembly department started department's November production activities. Percent of Direct Percent of Conversion sembly Department Beginning work in process Units transferred out Ending work in process UnitsMaterials Added 2,000 9,000 3, 000 60 1009 808 401 100 30 Beginning work in process $1,581 (includes $996 for direct materials inventory-Assembly dept and $585 for conversion) Costs added during the month: Direct materials Conversion $10,404 $12,285Explanation / Answer
Units
Reconciliation of Units
A
Opening WIP
2,000
B
Introduced
10,000
C=A+B
TOTAL
12,000
D
Transferred
9,000
E=C-D
Closing WIP
3,000
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
9,000
100%
9,000
100%
9,000
Closing WIP
3,000
80%
2,400
30%
900
Total
12,000
Total
11,400
Total
9,900
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Beginning WIP Inventory Cost
$ 996.00
$ 585.00
$ 1,581.00
Cost incurred during period
$ 10,404.00
$ 12,285.00
$ 22,689.00
Total Cost to be accounted for
$ 11,400.00
$ 12,870.00
$ 24,270.00
Total Equivalent Units
11,400
9,900
Cost per Equivalent Units
$ 1.00
$ 1.30
Answer
Cost per Equivalent units of Production
Choose Numerator
Choose Denominator
Cost per Equivalent Units of Production
Cost to be Allocated
/
Equivalent Units of Production
Direct Materials
$ 11,400.00
/
11400
$ 1.00
Conversion
$ 12,870.00
/
9900
$ 1.30
Note
In calculating cost per Equivalent units using weighted average method. Completion percentage completed of beginning inventory is not taken into consideration.
Units
Reconciliation of Units
A
Opening WIP
2,000
B
Introduced
10,000
C=A+B
TOTAL
12,000
D
Transferred
9,000
E=C-D
Closing WIP
3,000
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