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1. Calculate equivalent units of work done in the current period (for transferre

ID: 2391140 • Letter: 1

Question

1.

Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process.

2.

Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs.

3.

Assign costs to units completed (and transferred out) and to units in ending work in process.

1.

Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process.

2.

Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs.

3.

Assign costs to units completed (and transferred out) and to units in ending work in process.

Explanation / Answer

Physical Units

Transferred-in-cost

Direct Material

Conversion Cost

WIP, beginning

60

Transferred in during current period

100

To account for

160

Completed & transferred out during current period:-

From beginning WIP

60

0

60

30

Started & Completed

60

60

60

60

WIP Ending

40

40

0

30

Accounted for

160

Equivalent units of work done in current period

100

120

120

(2)

Transferred-in-cost

Direct Material

Conversion Cost

Cost during June (A)

108000

30000

61200

Equivalent units (B)

100

120

120

Cost/Equivalent unit

(A/B)

1080

250

510

(3)

Transferred-in-cost

Direct Material

Conversion Cost

Ending WIP

(40 * 1080)

=43200

0

(30 * 510)

=15300

Units completed & Transferred

(60 * 1080)

=64800

(60 * 250)

=15000

(60 * 510)

=30600

Physical Units

Transferred-in-cost

Direct Material

Conversion Cost

WIP, beginning

60

Transferred in during current period

100

To account for

160

Completed & transferred out during current period:-

From beginning WIP

60

0

60

30

Started & Completed

60

60

60

60

WIP Ending

40

40

0

30

Accounted for

160

Equivalent units of work done in current period

100

120

120