Computing Equivalent Production, Unit Costs, and Costs for Completed Units and E

Question

Computing Equivalent Production, Unit Costs, and Costs for Completed Units and Ending Inventory Precision Inc. manufactures wristwatches on an assembly line. The workin process inventory as of March 1 consisted of 1,000 watches that were complete as to mater als and 75% complete as to labor and overhead. The March 1 workin process costs were as follows: 5,000 5,000 8,000 .. Overhead... During the month, 10,000 units were started and 9,500 units were completed. The 1.500 units of ending inventory were complete as to materals and 25% complete as to labor and overhead. The costs for March were as follows: Labor 20,000 a. Calculate the equivalent units for material, labor, and overhead, using the weighted average cost method Material Labor and overhead b. Calculate the unit costs for materials, labor, and overhead (Round your answers to two decimal places, if necessary.) Use rounded answers in subsequent requirements. Equivalent units 11000 9875 Unit Costs Material Labor Overhead Total 6.00 2.53 5.67 134900

Explanation / Answer

b Unit costs Material 6 Labor 2.53 Overhead 5.67 Total 14.2 c Cost of units completed and transferred = 9500*14.2= 134900 d Cost of ending inventory: Material 9000 =1500*6 Labor 949 =375*2.53 Overhead 2126 =375*5.67 Cost of ending inventory 12075 e Total costs accounted for = 134900+12075= 146975

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