Requirement 2 Change all of the numbers in the data area of your worksheet so th

Question

Requirement 2 Change all of the numbers in the data area of your worksheet so that it looks like this 3 Data 4 Beginning work in process inventory: 5 Units in process 6 Completion with respect to materials 7 Completion with respect to conversion 8 Costs in the beginning work in process inventory: 9 10 Conversion cost 11 Units started into production during the period 12 Costs added to production during the period 13 Materials cost 14 Conversion cost 15 Ending work in process inventory: 16 Units in process 17 Completion with respect to materials 18 Completion with respect to conversion 800 85 % 60% Materials cost S31,078 S34,840 17,600 $798,842 $1,549,940 500 60% 80 % If your formulas are correct, you should get the correct answers to the following questions. (a) What is the equivalent units of production for materials? Equivalent units of production for materials 17,720 (b) What is the equivalent units of production for conversion? Equivalent units of production for conversion $18,020

Explanation / Answer

Solution Calculation as per weighted average method 1 Summary of Physical Units and Equivalent Unit calculation Units to account for Beginning Inventory                          800 Units started during the period                     17,600 Total units to account for                     18,400 (800+17,600) Total units accounted for Units completed and transferred out during May                     17,900 (18,400-500) Ending-Work in process (In units)                          500 Total units accounted for                     18,400 2 Equivalent units of production-Weighted average method (unit*% Material) (unit*% Conversion) Units % Material EUP-Material % Conversion EUP-Conversion Units completed and transferred out                     17,900 100%                     17,900 100%                     17,900 Ending-Work in process (In units)                          500 60%                          300 80% $                      400 Equivalent Units of conversion                     18,200                     18,300 3 Cost per Unit Material Conversion Total Cost of beginning work in progress $                 31,078 $                 34,840 $                 65,918 Cost incurred during the current period $              7,98,842 $           15,49,940 $           23,48,782 Total Cost Cost $              8,29,920 Cost $           15,84,780 $           24,14,700 Equivalent Units of production EUP                     18,200 EUP                     18,300 Cost per Unit (Cost/EUP) $                   45.60 (Cost/EUP) $                   86.60 4 Cost assignment and reconciliation aa bb aa*bb EUP Cost per EUP Total Cost Cost transferred out Direct material                     17,900 $                 45.600 $              8,16,240 (17900*45.60) Conversion Cost                     17,900 $                 86.600 $           15,50,140 (17,900*86.60) The total cost of units transferred out $           23,66,380 Answer: a. Equivalent units of production for material                     18,200 Units b. Equivalent units of production for conversion                     18,300 Units c. Cost per equivalent unit for material $                   45.60 d. Cost per equivalent unit for conversion $                   86.60 e. Cost of units transferred out $           23,66,380

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