Question

1.

The Filling Department of Eve Cosmetics Company had 4,600 ounces in beginning work in process inventory (30% complete). During the period, 45,900 ounces were completed. The ending work in process inventory was 2,300 ounces (30% complete).

What are the total equivalent units for conversion costs?

If required, round to the nearest unit.

2.

The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $256,000. The conversion cost for the period in the Filling Department is $82,620. The total equivalent units for direct materials and conversion are 40,000 ounces and 48,600 ounces, respectively.

Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent.

3.

The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $1.60 and $2.95, respectively. The equivalent units to be assigned costs are as follows:

	Equivalent Units
	Direct Materials		Conversion
Inventory in process, beginning of period	0		2,500
Started and completed during the period	35,000		35,000
Transferred out of Filling (completed)	35,000		37,500
Inventory in process, end of period	4,000		2,400
Total units to be assigned costs	39,000		39,900

The beginning work in process inventory had a cost of $1,530. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.

Completed and transferred-out production	$____
Inventory in process, ending	$____

Answer 1

1
To complete beginning work in process	3220	=4600*(1-30%)
Units started and completed	41300	=45900-4600
Ending work in process	690	=2300*30%
Total equivalent units for conversion costs	45210
2
Direct materials costs per equivalent unit	6.40	=256000/40000
Conversion costs per equivalent unit	1.70	=82620/48600
3
Beginning work in process inventory	1530
To complete beginning work in process inventory	7375	=2500*2.95
Cost of units started and completed	159250	=35000*(1.60+2.95)
Completed and transferred-out production	168155
Inventory in process, ending	13480	=(4000*1.60)+(2400*2.95)