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 22,450 To Finished Goods, 16,260 units ?
Direct materials, 16,000 units @ $21 336,000
Direct labor 101,380
Factory overhead 93,416
Bal. ? units, 45% completed ?
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.
Answer:
a. Units in process at beginning of period………………………………………… 900
Units placed in production during period……………………………………… 16,000
Less units finished during period………………………………………………… (16,260)
Units in process at end of period………………………………………………… 640
b.
Whole
Units
Equivalent Units
Direct
Materials Conversion
Inventory in process, beginning
(35% completed) 900 0 5851
Started and completed 15,3602 15,360 15,360
Transferred to finished goods 16,260 15,360 15,945
Inventory in process, ending
(45% completed) 640 640 2883
Total units 16,900 16,000 16,233
1 900 units × (1 – 35%)
2 16,260 units – 900 units
3 640 units × 45%
c. Costs
Direct
Materials Conversion
Total costs for period in Assembly Department $336,000 $194,796 *
Total equivalent units (from above) ÷ 16,000 ÷ 16,233
Cost per equivalent unit $ 21.00 $ 12.00
* $101,380 + $93,416
d. $506,880 [($21.00 + $12.00) × 15,360 units]