ace from Cengage Learning Google Chrome do?invoker assignments&t; Calculator Cos
ID: 2523686 • Letter: A
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ace from Cengage Learning Google Chrome do?invoker assignments&t; Calculator Cost of Units Completed and in Process The charges to work in Process- Assembly Department for s period, together with information concarmina srtion folloa. Al dret materis are plsced in prooems at the Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production Work in Process-Assembly Department Ba, 4,000 units, 30% completed Direct materials, 94,000 units $1.8 Direct labor Factory overhead Bal, 1 units, 65% completed To Finished Goods, 92,000 units 169, 150,000 a. Based on the above data, determine the Gitferent costs listed below. f required, round your interim calculations to two decimal places 1. Cost of beginning work in process inventory completed this period 2. Cost of units transferred to finished goods during the period D, Cost of ending work in process inventory 4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent b. Did the production costs change from the preceding period? c. Assuming that the direct materials cost per unit did not change from the preceding period, did the comversion bosts per equivalent nit increase, decrease, or remain the same for the current period? IncreaseExplanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 4,000 Add: Units Started in Process 94,000 Total Units to account for: 98,000 UNITS TO BE ACCOUNTED FOR: Units completed from Beginning WIP 4000 Units started and completed 88,000 Ending Work in Process 6,000 Total Units to be accounted for: 98,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 0% 0 70% 2,800 Units started and completed 100% 88,000 100% 88,000 Ending Work in Process 100% 6,000 65% 3,900 Total Equivalent units 94,000 94,700 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 169,200 208,340 Equivalent Units 94,000 94,700 Cost per Equivalent unit 1.8 2.2 TOTAL COST ACCOUNTED FOR: Units Completed from Beginning WIP (4000 units) Equivalent unit Cost per EU Total Cost Beginning Cost 9600 Material 0 1.8 0 Conversion Cost 2,800 2.2 6160 Cost of units completed from Beg WIP 15760 Units started and Transferred out (88000 units) Equivalent unit Cost per EU Total Cost Material 88,000 1.8 158400 Conversion Cost 88,000 2.2 193600 Total Cost of Units completed and transferred out: 352000 Ending Work in process (6,000 units) Equivalent unit Cost per EU Total Cost Material 6,000 1.8 10800 Conversison Cost 3,900 2.2 8580 Total cost of Ending Work in process: 19,380 Req 1: Cost of Beg. WIP completed: $ 15760 Req 2: Cost of units transferred to FG (15760+352000): $ 367,760 Req 3: Cost of ending WIP: $ 19380 Req 4: Cost pr unit completed beg. WIP (15760/4000): 3.94 per unit Req b: Yes, the production cost has been increased to $ 4.00 per unit Req c: Cost of beg WIP: 9600 Less: material cost (4000*1.8) 7200 Conversion cost in beg. WIP 2400 Equivalent units of conversion 1200 Conversion cost per unit 2 Hence, INCREASE In Conversion cost in the current year
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