Question

All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred...

All materials are entered at the beginning of each process.

Labor and manufacturing overhead are incurred uniformly throughout each process.

Production and cost data for the Assembly Department during July 2020 are presented below.

Production Data

July

Beginning work in process inventory, 7/1 (40% complete)

25,000

units

Units completed and transferred out

70,000

units

Ending work in process inventory, 7/31 (30% complete)

30,000

units

Cost Data

Materials

Conversion
Costs

Beginning work in process inventory, 7/1

$80,000

$12,000

Costs incurred during production in July

$190,000

$106,500

  Total

$270,000

$118,500


1. How many physical units have to be accounted for in July? (2) 2. How many physical units are transferred in to the Assembly Department? (3 points) 3. What are the equivalent units of production for materials, for conversion costs and for the total manufacturing costs for the month of July? (9 points) 4. Compute the unit costs of production for materials, for conversion costs and for the total manufacturing costs for the month of July (6 points) 5. What is the total cost assigned to the 70,000 units that were transferred out of the process in July? (3 points) 6. What is the total cost of the J

Homework Answers

Answer #1

1.

Units from beginning work in process =25,000

Units started into production =75,000

Total units to be accounted for =100,000

2. Transferred to Assembly department=70,000 units

3. Equivalent units of production

Materials Conversion
Units Completed and transferred out 70,000 70,000
Units in Ending Work-in-process 30,000 9,000
Equivalent Units of production 100,000 79,000

4. Cost per unit

Materials Conversion
Beginning Work-in-process $80,000 $12,000
Costs incurred this period $190,000 $106,500
Total costs $270,000 $118,500
÷ Equivalent units 100,000 79,000
Cost per equivalent unit $2.7 $1.5

5.

Cost of units transferred out = 70,000($2.7+$1.5) =$294,000

6. Cost of ending work in process

Materials (30,000×$2.7) =$81,000

Conversion (9,000×$1.5) =$13,500

Total cost of Ending Work-in-process =$94,500

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