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ignmentMain.do?invok gnments&ktakeAssignmentSessionLocator assignment-takeinprog

ID: 2339668 • Letter: I

Question

ignmentMain.do?invok gnments&ktakeAssignmentSessionLocator assignment-takeinprogress-false Print Item ly Department for a The charges to Work in placed in process at the beginning of production. together with information production, are as follows. All direct materials are Ba, 5,000 units, 45% completed Direct materials, 118,000 units $2.1 Direct labor Factory overhead Bal. 2 units, 35% completed Cost per equivalent units of $2.10 for Direct Materials and $3.30 for Conversion Costs. 7,475 247,800 To Finished Goods, 115,000 units 274,500 106,815 a. Based on the above data, determine the different costs listed below. If required, round your interim calculations to two decimal places. 1. Cost of beginning work in process inventory completed this period. 2. Cost of units transferred to finished goods during the period. 3. Cost of ending work in process inventory. 4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. b. Did the production costs change from the preceding period? 9,075 x 603,075X 26,040 17,475 X c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, Previous Next 3 more Check My Work uses remaining

Explanation / Answer

a. Cost of Beginning Work in Process completed during period

Equivalent Units of Production for period:

Opening Workin Process 5000x (100-45)% = 2750

Units Introduced and completed during the period =115000

Closing Work-In process 3000*35%= 1050

Total Equivalent Production Units= 2750+115000+1050=118800

Conversion Costs Per Unit= (Labour + Factory Overhead) / No. of Equivalent Units= (274500+106815)/118800=$3.21 per unit

Total Cost of Beginning Work-in-process= 17475+(2750x3.21)=26302

b. Cost of Units transferred to finished goods during the period

Material Cost + Units Completed during period*Conversion Cost Per unit

=(115000x2.1)+(115000x3.21)=$ 610,650

c. Cost of Ending Work in Process Inventory

3000 units @ 35% completed= Material Cost + Conversion Cost =3000 x(2.1+3.21)= $15,930

d. Cost per Unit of Beginning Work in process

=(Opening work in process amount + Conversion Cost during the period)/ No. of Units

= (17475+(2750x3.21))/5000=$ 5.26 per unit

B. Yes Production Cost changed from previous period.