Cost of Units Completed and in ProcessThe charges to Work in Process—Assembly Department for...

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Accounting

Cost of Units Completed and in Process
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 ofproduction.
Work inProcess—Assembly Department
Bal., 4,000 units, 30%completed 12,400 To Finished Goods,92,000 units ?
Direct materials,94,000 units @ $1.9 178,600
Direct labor 286,700
Factory overhead 111,480
Bal. ? units, 30%completed ?
Cost per equivalent units of $1.90 for Direct Materials and$4.30 for Conversion Costs.
a. Based on the above data, determine thedifferent costs listed below.
If required, round your interim calculations to two decimalplaces.
1. Cost of beginning work in process inventory completed thisperiod. $
2. Cost of units transferred to finished goods during theperiod. $
3. Cost of ending work in process inventory. $
4. Cost per unit of the completed beginning work in processinventory, rounded to the nearest cent. $
b. Did the production costs change from thepreceding period?
Yes
c. Assuming that the direct materials cost perunit did not change from the preceding period, did the conversioncosts per equivalent unit increase, decrease, or remain the samefor the current period?
Increase

Work inProcess—Assembly Department
Bal., 4,000 units, 30%completed	12,400	To Finished Goods,92,000 units	?
Direct materials,94,000 units @ $1.9	178,600
Direct labor	286,700
Factory overhead	111,480
Bal. ? units, 30%completed	?

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4.0 Ratings (644 Votes)

Step for solution Step 1 Equivalent Units of production Physical units multiplied by of competition Step 2 Calculate total cost to be accounted for Step 3 Cost per Equivalent Unit Cost incurred during Month Equivalent Units of production Step 4 Cost assigned to units transferred out Cost in beginning WIP Cost incurred for complete beginning WIP Cost of units in Started and completed Step 5 Cost assigned to units ending work in progress equivalent units in ending WIP inventory Cost per Equivalent Unit For direct material 100 unit completed it means remaining 0 completed in this month For conversion cost See Answer

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In: AccountingCost of Units Completed and in ProcessThe charges to Work in Process—Assembly Department for a...Cost of Units Completed and in ProcessThe 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 ofproduction.Work inProcess—Assembly DepartmentBal., 4,000 units, 30%completed12,400To Finished Goods,92,000 units?Direct materials,94,000 units @ $1.9178,600Direct labor286,700Factory overhead111,480Bal. ? units, 30%completed?Cost per equivalent units of $1.90 for Direct Materials and$4.30 for Conversion Costs.a. Based on the above data, determine thedifferent costs listed below.If required, round your interim calculations to two decimalplaces.1. Cost of beginning work in process inventory completed thisperiod.$2. Cost of units transferred to finished goods during theperiod.$3. Cost of ending work in process inventory.$4. Cost per unit of the completed beginning work in processinventory, rounded to the nearest cent.$b. Did the production costs change from thepreceding period?Yesc. Assuming that the direct materials cost perunit did not change from the preceding period, did the conversioncosts per equivalent unit increase, decrease, or remain the samefor the current period?Increase

1. Cost of beginning work in process inventory completed thisperiod.	$
2. Cost of units transferred to finished goods during theperiod.	$
3. Cost of ending work in process inventory.	$
4. Cost per unit of the completed beginning work in processinventory, rounded to the nearest cent.	$