You are a summer interm at Webster Enterprises. You werea April the department m

Question

You are a summer interm at Webster Enterprises. You werea April the department manager forwarded the following infomation: signed to the Mixing Department (one of fou processes anvolved in the productioe of dog food as an assitant to dhe depatot mage Ar the Work in Process, July 120 Units started in production Endung units, April 30 00 164,000 24,000 Percent complete (Endang Units. Apnl 30) Materials Conversion c 100% 60% TOTAL Costs incuared Direct materials Direct labos Overhead 101,200 164,800 184,000 INSTRUCTIONS The departmesnt manager has given you a project requiring that you prepare a report thar shows the following The equivaleut uwats of production for materials and conversion cots The unit cost of production a. b. c. The total cost assigned to () units transferred out and (Gi) incomplete unst

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 20,000 Add: Units Started in Process 164,000 Total Units to account for: 184,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 160,000 Ending Work in Process 24,000 Total Units to be accounted for: 184,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 160,000 100% 160,000 Ending Work in Process 100% 24,000 60% 14,400 Total Equivalent units 184,000 174,400 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 101,200 348,800 Equivalent Units 184,000 174,400 Cost per Equivalent unit 0.55 2 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (160000 units) Equivalent unit Cost per EU Total Cost Material 160,000 0.55 88000 Conversion Cost 160,000 2 320000 Total Cost of Units completed and transferred out: 408000 Ending Work in process (24,000 units) Equivalent unit Cost per EU Total Cost Material 24,000 0.55 13200 Conversison Cost 14,400 2 28800 Total cost of Ending Work in process: 42,000 Req a: Equivalent Units Material 184000 Conversion 174400 Req b: Cost per EUP Material 0.55 Conversion 2 Rreq c: Cost of units transferred out:   408000 Cost of Ending Wip: 42000

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