Work in process, beginning: Units in process ...................................
ID: 2383452 • Letter: W
Question
Work in process, beginning:
Units in process ................................................... 6,000
Percent complete with respect to materials ....... 60%
Percent complete with respect to conversion 20%
Costs in the beginning inventory:
Materials cost............................................ $78,200
Units started during the month .....................................? .
Units completed and transferred out
during the month ...............................................70,000
Costs added to production during the month:
Materials cost ............................................ $286,600
Conversion cost .......................................216,000
Work in process, ending:
Units in process .........................................8,000
Percent complete with respect to materials ....... . .... 75%
Percent complete with respect to conversion................25%
Required
How many units were started into production during the month?
What was the cost per equivalent unit for conversion during the month?
How much cost, in total, was assigned to the units transferred out to the next department during the month?
- Sumter Company uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month:
Work in process, beginning:
Units in process ................................................... 6,000
Percent complete with respect to materials ....... 60%
Percent complete with respect to conversion 20%
Costs in the beginning inventory:
Materials cost............................................ $78,200
Conversion cost $3,600Units started during the month .....................................? .
Units completed and transferred out
during the month ...............................................70,000
Costs added to production during the month:
Materials cost ............................................ $286,600
Conversion cost .......................................216,000
Work in process, ending:
Units in process .........................................8,000
Percent complete with respect to materials ....... . .... 75%
Percent complete with respect to conversion................25%
Required
How many units were started into production during the month?
What was the cost per equivalent unit for conversion during the month?
How much cost, in total, was assigned to the units transferred out to the next department during the month?
Explanation / Answer
Answer to first question: 72,000 units were started into production.
There were 70,000 completed and transferred out and 8,000 at the ending, which is a total of 78,000 to account for. They had 6,000 at the beginning, so 72,000 were started into production. (70,000 + 8,000 – 6,000 = 72,000)
Answer to second question: $3.05 cost per equivalent unit for conversion costs
Equivalent units for conversion: 70,000 equivalent units completed and transferred out (100% complete) + 2,000 in ending inventory (8,000*25% complete) = 72,000 equivalent units
Costs: 3600 (beginning) + 216,000 (added) = 219,600
Cost per equivalent unit for conversion costs = 219,600/72,000 = $3.05
Answer to third question: costs assigned to units transferred out: $549,500
Cost per equivalent unit for materials:
Costs: 78,200 + 286,600 = 364,800
Equivalent units: 70,000 + 8,000*0.75 = 76,000
Cost per equivalent unit for materials = 364,800/76,000 = $4.80.
70,000 units were transferred:
Direct material cost for these units = 70,000*4.80 = 336,000
Conversion costs for these units = 70,000 *3.05 213,500
Total costs = $549,500
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