1. Equivalent Units of Production and Related Costs

   The charges to Work in ProcessAssembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in the process at the beginning of production.

   Work in ProcessAssembly Department
   Bal., 6,400 units, 40% completed	45,760	To Finished Goods, 119,400 units	?
   Direct materials, 116,000 units @ $6.25	725,000
   Direct labor	145,160
   Factory overhead	90,020
   Bal. ? units, 25% completed	?

   Determine the following:

   a. The number of units in work in process inventory at the end of the period. units

   Feedback

   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 box does not require an entry, leave it blank.

   Work in Process-Assembly Department
   Equivalent Units of Production for Direct Materials and Conversion Costs
   	Whole Units	Equivalent Units Direct Materials	Equivalent Units Conversion
   Inventory in process, beginning
   Started and completed
   Transferred to finished goods
   Inventory in process, ending
   Total units

   c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent.

   	Costs Per Equivalent Unit
   Direct Materials	$
   Conversion	$

   d. Cost of the units started and completed during the period. $

   Feedback

   Are the equivalent units for materials and conversion the same? Are the total costs for materials and conversion the same? How are these costs allocated out among equivalent units?

   Remember that in order for a unit to be complete it has to be complete with respect to both materials and conversion.

2.

Cost of Units Transferred Out and Ending Work in Process

The costs per equivalent unit of direct materials and conversion in the Rolling Department of Blackrock Steel Company are $45 and $12, respectively. The equivalent units to be assigned costs are as follows:

	Equivalent Units
	Direct Materials		Conversion
Inventory in process, beginning of period	0		640
Started and completed during the period	11,900		11,900
Transferred out of Rolling (completed)	11,900		12,540
Inventory in process, end of period	2,000		600
Total units to be assigned costs	13,900		13,140

The beginning work in process inventory had a cost of $38,020. Determine the cost of completed and transferred-out production and the ending work in process inventory.

Completed and transferred out of production	$
Inventory in process, ending