A). Equivalent Units of Materials Cost The Filling Department of Eve Cosmetics C
ID: 2554129 • Letter: A
Question
A).
Equivalent Units of Materials Cost
The Filling Department of Eve Cosmetics Company had 3,200 ounces in beginning work in process inventory (60% complete). During the period, 53,000 ounces were completed. The ending work in process inventory was 2,700 ounces (40% complete).
What are the total equivalent units for direct materials if materials are added at the beginning of the process?
B).
artment of Eve Cosmetics Company had 2,900 ounces in beginning work in process inventory (80% complete). During the period, 47,500 ounces were completed. The ending work in process inventory was 2,400 ounces (10% complete).
What are the total equivalent units for conversion costs?
If required, round to the nearest unit.
C).
Cost per Equivalent Unit
The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $171,270. The conversion cost for the period in the Filling Department is $306,800. The total equivalent units for direct materials and conversion are 51,900 ounces and 59,000 ounces, respectively.
Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent.
$ per ounce
D).
Cost of Units Transferred Out and Ending Work in Process
The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $1.75 and $0.70, respectively. The equivalent units to be assigned costs are as follows:
The beginning work in process inventory had a cost of $2,610. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.
E).
Process Cost Journal Entries
The cost of materials transferred into the Rolling Department of Keystone Steel Company is $574,400 from the Casting Department. The conversion cost for the period in the Rolling Department is $110,100 ($62,200 factory overhead applied and $47,900 direct labor). The total cost transferred to Finished Goods for the period was $689,600. The Rolling Department had a beginning inventory of $22,500.
a1. Journalize the cost of transferred-in materials.
a2. Journalize the conversion costs. If an amount box does not require an entry, leave it blank.
a3. Journalize the costs transferred out to Finished Goods.
b. Determine the balance of Work in Process—Rolling at the end of the period.
$
$ per ounce
Explanation / Answer
Solution:
Problem A – Equivalent Units of Materials Cost
It is assumed that the company is following First in First Out Method in process costing.
Beginning Work in Process inventory = 3200 ounces
Completed units during the period = 53,000 ounces
Ending Work In Process Inventory = 2700 ounces
Since material is added at the beginning of process, it means material when added it is complete 100% in all respect because all the material added at beginning.
Therefore, the percentage of completion given in the question is related to Conversion Cost.
Calculation of Equivalent Units of Materials Cost
Total Units
% material
Material - EUP
Partial Completed Units from beginning work in process
3200
0%
0
New added and completed Units during the period
49800
100%
49800
Total Completed Units during the period
53000
Ending Work In Process
2700
100%
2700
Total
55700
52500
Total Equivalent Units of Material Cost = 52,500 Units
Note --- If the company is using Weighted Average Cost method in process costing, the answer will be different.
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining parts.
Total Units
% material
Material - EUP
Partial Completed Units from beginning work in process
3200
0%
0
New added and completed Units during the period
49800
100%
49800
Total Completed Units during the period
53000
Ending Work In Process
2700
100%
2700
Total
55700
52500
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