Question

1. A) For the Sirap Co. Calculate units to be assigned costs for November. Process Costing Department Two, Shaping Dept., received 85,500 units from dept. one. During November Dept. two completed 87,000 units, including 6,000 units of Work in Process on November 1, the ending W.I.P was 4,500 units. (4pts) calculate the number of units that were started and completed in the month of November.

B) For the Sirap Co. Calculate the Equivalent Units of Materials Costs. (Use the Data from Part 5A above). Department 2 had 6,000 units in beginning W.I.P that were 0% complete. During November 87,000 units were completed. The ending work in process was 4,500 units for Dept. 2 60% Complete. Note that materials Costs are applied at the Beginning of the Production Process. Conversion Costs are applied evenly throughout the Production process.

                Required:

1. Calculate equivalent units of Materials costs using the above data. (5pts)
2. Calculate equivalent units of conversion costs using above data. (7pts)

Answer 1

Solution A:

Units started and completed in the month of november = Units completed - Units completed from beginning WIP

= 87000 - 6000 = 81000 units

Solution B:

Assembly Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Material	Conversion
Units to be accounted for:
Beginning WIP Inventory	6000
Units started this period	85500
Total unit to be accounted for	91500
Units Accounted for:
Units completed and transferred out
From beginning inventory Material - 0% Conversion - 100%	6000	0	6000
Started and completed currently	81000	81000	81000
Transferred to finished goods	87000	81000	87000
Units in ending WIP Material - 100% Conversion - 60%	4500	4500	2700
Total units accounted for	91500	85500	89700