Question

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 of production.

Work in Process—Assembly Department
Bal., 2,000 units, 25% completed	4,100	To Finished Goods, 46,000 units	?
Direct materials, 47,000 units @ $1.4	65,800
Direct labor	92,900
Factory overhead	36,180
Bal. ? units, 20% completed	?

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

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

Answer 1

	Physcial units	Materials	Conversion
Work in Process Beginning	2000
Started during the period	47000
To account for	49000
Work in Process Beginning	2000	0	1500
Units started and completed	44000	44000	44000
Units transferred to next department	46000	44000	45500
Ending Work in Process :	3000	3000	600
Accounted for	49000
Equivalent units		47000	46100
	Materials	Conversion	Total
Cost added during the period	$          65,800	$          1,29,080	$       1,94,880
Equivalent units of Production	47000	46100
Cost per equivalent unit	$              1.40	$                 2.80	$               4.20
	Materials	Conversion	Total
Ending work in Process Inventory
Equivalent units of Production	3000	600
Cost per equivalent unit	$              1.40	$                 2.80
Cost of Ending work in Process Inventory	$            4,200	$               1,680	$             5,880
	Materials	Conversion	Total
Units Completed and transferred out
Cost of Beginning Work in Process			$             4,100
Cost of work on Beginning Work in Process	$                   -	$               4,200	$             4,200
Total Cost of Beginning WIP			$             8,300
Units started and completed	44000	44000
Cost per equivalent unit	$              1.40	$                 2.80
Cost of units started and completed	$          61,600	$         1,23,200	$       1,84,800
Cost of units transferred out			$       1,93,100
Reconciliation
Costs to be accounted for :
Cost of beginning work in process inventory	$            4,100
Costs added to the production during the year	$       1,94,880
Total Costs to be accounted for	$       1,98,980
Cost of Ending work in Process Inventory	$            5,880
Cost of units transferred out	$       1,93,100
Total Costs accounted for	$       1,98,980

1. Cost of Beginning Work in Process completed this period = $4200+4100 = $8300 or $4200 for only work completed this period

2. Cost of units transferred = $193100

3. Cost of ending work in process = $5880

4. Cost per unit of Beginning Work in process = $8300/2000 = $4.15 per unit