The following information relates to BABA, inc. for the month of November; Beg.

Question

The following information relates to BABA, inc. for the month of November;

Beg. Work in process;

Direct materials, 100% complete

Conversion costs, 70% complete

Units units started in Nov, 14,000

Nov Cost charged to WIP

   Direct ate rials costs, $57,400

   Direct labor costs, $20,049

   Factory overhead costs $30,073

ending WIP: nov 30. 1,500 units

   Direct materials 100% complete

   Conversion costs 30% complete

using the FIFO, calculate

a) the equivalent units for materials and conversion costs.

B) the cost per equivalent units of materials and conversion costs.

Explanation / Answer

Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent mat Opening WIP                             -   0%                                 -   30%                                 -   Units started and completed(14000-1500)              12,500.00 100%                 12,500.00              12,500.00 100%                 12,500.00 Closing WIP                1,500.00 100%                    1,500.00                1,500.00 30%                       450.00 Equivalent Units                 14,000.00                 12,950.00 Current Month Costs                 57,400.00                 50,122.00 Cost per Equivalent units                            4.10                            3.87 Note: Units of opening WIP arenot given thus ignored

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