a. Determine the equivalent units of production for materials and conversion cos

Question

a. Determine the equivalent units of production for materials and conversion costs.

     Materials (FIFO): ______________             Conversion (Wt. Average): _________________

b. Determine the cost per equivalent unit for materials and conversion costs.

     Materials (FIFO): ______________             Conversion (Wt. Average): _________________

c. Determine the cost of units transferred out of the department during the month. ___________

d. Determine the cost of ending work-in-process inventory. ___________________
   

  

  

  

Dana Inc. uses a process costing system. The following data concern the operations of the company's first processing department for a recent month.



Required: USE the FIFO method to calculate the unit cost for direct materials, and the weighted average to calculate the unit cost for conversion costs.

Use either the FIFO or the weighted average method to determine the following:

a. Determine the equivalent units of production for materials and conversion costs.

     Materials (FIFO): ______________             Conversion (Wt. Average): _________________

b. Determine the cost per equivalent unit for materials and conversion costs.

     Materials (FIFO): ______________             Conversion (Wt. Average): _________________

c. Determine the cost of units transferred out of the department during the month. ___________

d. Determine the cost of ending work-in-process inventory. ___________________
   

  

  

  

Work in process, beginning: Units in Process Percent complete with respect to materials Percent complete with respect to conversion Costs in the beginning inventory Materials cost Conversion cost Units started into production Costs added to production during the month: Materials cost Conversion cost Work in process, ending Units in Process Percent complete with respect to materials Percent complete with respect to conversion 700 30% 20% 2,587 10,706 6,000 54,245 58,195 1,300 40% 30%

Explanation / Answer

Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Opening WIP                    700.00 70%                       490.00                    700.00 80%                       560.00 Units started and completed (6000-1300)                4,700.00 100%                    4,700.00                4,700.00 100%                    4,700.00 ending WIP                1,300.00 40%                       520.00                1,300.00 30%                       390.00 a) Equivalent Units                    5,710.00                    5,650.00 Current Month Costs                 54,245.00                 58,195.00 b) Cost per Equivalent units                            9.50                          10.30 Ending WIP Units                       520.00                       390.00 d) Cost of ending WIP                    4,940.00                    4,017.00 Units transferred                    5,190.00                    5,260.00 c) Cost of units transferred                 49,305.00                 54,178.00 Note - Assumed FIFO method

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