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eBook Equivalent Units of Production and Related Costs The charges to Work in Pr

ID: 2517503 • Letter: E

Question

eBook Equivalent Units of Production and Related Costs The charges to Work in Process-Assembly Department for a period, together with information concerning production, are as fo Show Me How Calculator beginning of production. Work in Process-Assembly Department Bal, 4,000 units, 55% completed Direct materials, 94,000 units@$1.5 Direct labor Factory overhead Bal. 2 units, 50% completed To Finished Goods, 92,000 units 13,040 141,000 227,200 88,320 Determine the following a. The number of units in work in process inventory at the end of the period. 6,000 units Feedbacik 7 Check My Work Units in ending work in process represent units that have been started in the department but have not been completed, and ther goods b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0 Work in Process-Assembly Department

Explanation / Answer

a. The number of units in work in process inventory at the end of the period:

(4000+94000) – 92000 = 6000 units

b.

Work in Process-Assembly Department

Equivalent Units of Production for Direct Materials and Conversion Costs

Whole units

Equivalent Units Direct Materials

Equivalent Units Conversion

Inventory in process, beginning

4000

0

(4000 x .55) = 2200

4000 – 2200 = 1800

Started and completed

88000 (92000 – 4000)

88000

88000

Transferred to finished goods

92000

88000

89800

Inventory in process, ending

6000

6000

3000(6000 x 50%)

Total units

98000

94000

92800

c.

Costs Per Equivalent Unit

Direct Materials 141000/94000

1.5

Conversion 227200+88320=315520/92800

3.4

d. Cost of the units started and completed during the period

(1.5 + 3.4) x 88000 = 431200

Whole units

Equivalent Units Direct Materials

Equivalent Units Conversion

Inventory in process, beginning

4000

0

(4000 x .55) = 2200

4000 – 2200 = 1800

Started and completed

88000 (92000 – 4000)

88000

88000

Transferred to finished goods

92000

88000

89800

Inventory in process, ending

6000

6000

3000(6000 x 50%)

Total units

98000

94000

92800

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