Question

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.
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 is zero or a blank, enter in "0".

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

Answer 1

a.

Units in ending inventory:

= 9,000 + 40,000 - 41,500

= 7,500

b.

Units started and completed:

= 41,500 - 9,000

= 32,500

Conversion cost:

Beginning work in process:

= 9,000 X 60%

= 5,400

Ending work in process:

= 7,500 X 30%

= 2,250

	Whole units	Direct material	Direct labor
Inventory in process, beginning	9,000	0	5,400
Started and completed	32,500	32,500	32,500
Transferred to finished goods	41,500	32,500	37,900
Inventory in process, ending	7,500	7,500	2,250
Total units	49,000	40,000	40,150