Two part question: 1) The computation of the cost per equivalent unit is explain

Question

Two part question:

1) The computation of the cost per equivalent unit is explained in a

a) Job Order Cost Sheet

b) Materials Requisition Report

c) Cost of Production Report

d) Transfer-in Cost Report

2) Cantor Company had 400 units of product in its Work in Process inventory at the beginning of the period. During the period Cantor started 3,900 additional units of product. At the end of the period Cantor had 300 units of product in the Work in Process inventory. Cantor estimated the ending Work in Process inventory was 40% complete. The beginning Work in Process inventory cost was $1,840. Cantor added $130,000 of product costs to Work in Process during the period. What is the ending balance in the Work in Process account?

a) $9,600

b) $3,840

c) $105,600

d) $128,000

Explanation / Answer

Units % of completion Equivalent units Beginning work in process                   400 100%                       400 Units started and completed during the period               3,600 100%                    3,600 Ending work in process                   300 40%                       120 TOTAL               4,300                    4,120 $ Cost of beginning inventory               1,840 Add: Costs added during the period           130,000 Total costs           131,840 Cost per Equivalent unit = $ 131,840 / 4,120 units = $ 32 per unit Cost of Ending work in process = 120 units x $ 32 = $ 3,840

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