For Nevine, Inc., the value of beginning Work in Process Inventory was $107,000,

Question

For Nevine, Inc., the value of beginning Work in Process Inventory was $107,000, 25% of which was direct materials cost. During the period, Nevine completed work on 43,500 units, only completed 85% of the work on another 10,500 units, and incurred $81,000 in direct materials cost and $181,500 in conversion costs. Nevine adds direct materials at the beginning of their production process, and incurs conversion costs evenly throughout the process. Required: a. Calculate the equivalent units for direct materials. Equivalent units b. Calculate the equivalent units for conversion costs. Equivalent units c. Calculate the cost per equivalent unit for direct materials. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Cost per equivalent unit $ d. Calculate the cost per equivalent unit for conversion costs. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Cost per equivalent unit $ e. Calculate the cost assigned to ending Work in Process Inventory.(Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Ending work in process $ f. Calculate the cost assigned to goods completed and transferred out. (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Goods completed and transferred out $

Explanation / Answer

For Nevine, Inc., the value of beginning Work in Process Inventory was $107,000, 25% of which was direct materials cost. During the period, Nevine completed work on 43,500 units, only completed 85% of the work on another 10,500 units, and incurred $81,000 in direct materials cost and $181,500 in conversion costs. Nevine adds direct materials at the beginning of their production process, and incurs conversion costs evenly throughout the process. Required: a. Calculate the equivalent units for direct materials. Equivalent units b. Calculate the equivalent units for conversion costs. Equivalent units c. Calculate the cost per equivalent unit for direct materials. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Cost per equivalent unit $ d. Calculate the cost per equivalen

a. Calculate the equivalent units for direct materials. Equivalent units

a. 54,000 = 43,500 X 100% + 10,500 X 100%

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e. $26 = ($3,000 + $75,000)/3,000

d. $17 = ($7,000 + $52,500)/3,500 c. 3,000 = 2,500X 100% + 1,000 X50%

b. 3,500 = 2,500 100% + 1,000 100%

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