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EX 20-11 Equivalent units of production and related costs OBJ. 2 r with infor Th

ID: 2576923 • Letter: E

Question

EX 20-11 Equivalent units of production and related costs OBJ. 2 r with infor The charges to Work in Process-Assembly Department for a period, togethe mation concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process-Assembly Department Bal, 900 units, 35% completed Direct materials, 16,000 units@ $21 Direct labor Factory overhead Bal. 2 units, 45% completed 22,450 To Finished Goods, 16,260 units 36,000 101,380 93,416 Determine the following: a. The number of units in work in process inventory at the end of the period. b. Equivalent units of production for direct materials and conversion c. Costs per equivalent unit for direct materials and conversion. d. Cost of the units started and completed during the period.

Explanation / Answer

Particulars Equivalent Units Physical Units Materials Conversion Costs Units to be accounted for Work in process - Beginning                                     900 Started into production                               16,000 Total units                               16,900 Units accounted for Goods Units Completed & transferred out: From Beginning WIP                                     900                                        -                               585 (0% materials, 65% conversion costs) Started & Completed (16,260 - 900)                               15,360                               15,360                       15,360 Work in process, Ending (16,900 - 16,260)                                     640                                     640                             288 (100% materials, 45% conversion costs) Equivalent units accounted for                               16,900                               16,000                       16,233 Materials Conversion Costs Total Total Cost to Account for: WIP, Beginning                       22,450 Cost added in current period                            336,000                            194,796                     530,796 Total cost to be account for                            336,000                            194,796                     553,246 Cost added in current period                            336,000                            194,796                     530,796 Equivalent Units of work done in current Period                               16,000                               16,233 Cost per Equivalent Unit                                 21.00                                 12.00                         33.00 Assignment of Costs: Goods Units and Completed out (16,260 Units) WIP, Beginning - 900 Units                                        -                                          -                         22,450 Cost added to Beg. WIP in Current period                                        -                                   7,020                         7,020 (585 Units X $12) Total of Beginning Inventory before Normal Spoilage                                        -                                   7,020                       29,470 Started and completed - 15,360 Units                            322,560                            184,320                     506,880 (15,360 units X $21) (15,360 units X $12) Total Cost of good units completed & transferred out                            322,560                            191,340                     536,350 WIP, Ending - 640 Units                               13,440                                 3,456                       16,896 (640 Units X $21) (288 Units X $12) Total Cost accounted For                            336,000                            194,796                     553,246 Answer a. No. of Units in Ending WIP                                     640 Answer b. Equivalent Units For Direct Material                               16,000 Equivalent Units For Conversion                               16,233 Answer c. Cost per equivalent units for Direct Material                                 21.00 Cost per equivalent units for Conevrsion                                 12.00 Answer d. Cost of Units started & Completed during the period                            506,880