Equivalent Units of Production and Related Costs The charges to Work in Process-Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process-Assembly Department Bal., 9,000 units, 40% completed 72,360 To Finished Goods, 41,500 units Direct materials, 40,000 units @ $6.80 272,000 Direct labor 80,000 Factory overhead 40,450 Bal., ? units, 30% completed Determine the following: a. The number of units in work in process inventory at the end of the period. 7,500 V units Feedback V Check My Work Units in ending work in process represent units that have been started in the department but have not been completed, and therefore have not been transferred out to finished goods. b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0". Work in Process-Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs Equivalent Units Equivalent Units Direct Materials Whole Units Conversion Inventory in process, beginning 9.000 5,400 v Started and completed 32,500 V 32,500 v 32,500 V Transferred to finished goods 41.500 v 32,500 37,900 Inventory in process, ending 7,500 V 7,500 v 2.250 Total units 49,000 v 40,000 v 40,150 V Feedback V Check My Work When are materials added in the process? How does that affect the number of equivalent units in beginning work in process, units that have been started and completed and units in ending work in process? For units to be completed they have to be complete with respect to both materials and conversion. c. Costs per equivalent unit for direct materials and conversion. Costs Per Equivalent Unit Direct Materials 6.8 v Conversion d. Cost of the units started and completed during the period.
Equivalent Units of Production and Related Costs The charges to Work in Process-Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process-Assembly Department Bal., 9,000 units, 40% completed 72,360 To Finished Goods, 41,500 units Direct materials, 40,000 units @ $6.80 272,000 Direct labor 80,000 Factory overhead 40,450 Bal., ? units, 30% completed Determine the following: a. The number of units in work in process inventory at the end of the period. 7,500 V units Feedback V Check My Work Units in ending work in process represent units that have been started in the department but have not been completed, and therefore have not been transferred out to finished goods. b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0". Work in Process-Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs Equivalent Units Equivalent Units Direct Materials Whole Units Conversion Inventory in process, beginning 9.000 5,400 v Started and completed 32,500 V 32,500 v 32,500 V Transferred to finished goods 41.500 v 32,500 37,900 Inventory in process, ending 7,500 V 7,500 v 2.250 Total units 49,000 v 40,000 v 40,150 V Feedback V Check My Work When are materials added in the process? How does that affect the number of equivalent units in beginning work in process, units that have been started and completed and units in ending work in process? For units to be completed they have to be complete with respect to both materials and conversion. c. Costs per equivalent unit for direct materials and conversion. Costs Per Equivalent Unit Direct Materials 6.8 v Conversion d. Cost of the units started and completed during the period.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 14E: Cost per equivalent unit The following information concerns production in the Forging Department for...
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Equivalent Units of Production and Related Costs
The charges to Work in Process-Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.
Work in Process-Assembly Department
Bal., 9,000 units, 40% completed
72,360 To Finished Goods, 41,500 units
Direct materials, 40,000 units @ $6.80
272,000
Direct labor
80,000
Factory overhead
40,450
Bal., ? units, 30% completed
Determine the following:
a. The number of units in work in process inventory at the end of the period.
7,500 V units
Feedback
V Check My Work
Units in ending work in process represent units that have been started in the department but have not been completed, and therefore have not been transferred out to finished goods.
b. Eguivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0".
Work in Process-Assembly Department
Equivalent Units of Production for Direct Materials and Conversion Costs
Whole
Equivalent Units Equivalent Units
Units
Direct Materials
Conversion
Inventory in process, beginning
9,000
5,400
Started and completed
32,500
32,500 V
32,500
Transferred to finished goods
41,500
32,500 V
37,900
Inventory in process, ending
7,500
7,500 V
2,250
Total units
49,000
40,000
40,150
Feedback
V Check My Work
When are materials added in the process? How does that affect the number of equivalent units in beginning work in process, units that have been started and completed and units in ending work in process? For
units to be completed they have to be complete with respect to both materials and conversion.
c. Costs per equivalent unit for direct materials and conversion.
Costs Per Equivalent Unit
Direct Materials
6.8
Conversion
d. Cost of the units started and completed during the period.
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