During April, the production department of a process manufacturing system comple

Question

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 68,000 were in process in the production department at the beginning of April and 272,000 were started and completed in April. April's beginning inventory units were 75% complete with respect to materials and 25% complete with respect to conversion. At the end of April, 90,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion.

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 68,000 Add: Units Started in Process 362,000 Total Units to account for: 430,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 340,000 Ending Work in Process 90,000 Total Units to be accounted for: 430,000 Equivalent Units: UNITS Material Cost Conversion % Completion Units % Completion Units Units started and completed 340000 100% 340,000 100% 340,000 Ending Work in Process 90000 90% 81,000 40% 36,000 Total Equivalent units 430000 421,000 376,000 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 151,350 23,230 Cost Added during May 1,006,400 728,770 Total Cost to account for: 1,157,750 752,000 Equivalent Units 421,000 376,000 Cost per Equivalent unit 2.75 2 TOTAL COST ACCOUNTED FOR: Units Completed and Transferred out (340000 units) Equivalent unit Cost per EU Total Cost Material 340,000 2.75 935000 Conversion Cost 340,000 2 680000 Total Cost of Units completed and transferred out: 1615000 Ending Work in process (90000 units) Equivalent unit Cost per EU Total Cost Material 81,000 2.75 222750 Conversison Cost 36,000 2 72000 Total cost of Ending Work in process: 294,750 Total cost accounted for 1,909,750

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.