Exercise 3. StarMetor Company has ceveral processing departments Costs charged t

Question

Exercise 3. StarMetor Company has ceveral processing departments Costs charged to the Assembly Deprrment for August 2016 was $6,140,000 as follos. Work in process, August 1 Materials - 80,000 520,000 1,920,000 2,800,000 900,000 Conversion COsts 440,000- Materials added Labor- Ovahead Production records show that 50,000 units were in beginning work in process 60% complete as to conversion cost, 450,000 units were started into produaion, and 100,000 units wee in ending work in process 60% complete as to conversion costs Materials are ented at the beginning of each process Instructions (a) Determine the equivalent units of production and the unit production costs for the Assembly

Explanation / Answer

Solution a:

Unit production cost ofr assembly department = $4 + $9 = $13 per unit

Computation of Equivalent unit of Production - Weighted Average (Assembly Department) Particulars Physical Units Material Conversion (Labor + Overhead) Unit completed & Transferred out (50000 + 450000 - 100000) 400000 400000 400000 Closing WIP: 100000 Material (100%) 100000 Conversion (60%) 60000 Equivalent units of production 500000 500000 460000

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