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, 35% completed	23,355	To Finished Goods, 207,000 units	?
Direct materials, 212,000 units @ $2	424,000
Direct labor	268,700
Factory overhead	104,530
Bal. ? units, 25% completed	?

Determine the following:

a. The number of units in work in process inventory at the end of the period.
units

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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

c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent.

	Costs Per Equivalent Unit
Direct Materials	$
Conversion	$

d. Cost of the units started and completed during the period.
$

Answer 1

a
Units in work in process inventory at the end of the period=9000+212000-207000= 14000
b
Work in Process-Assembly Department
Equivalent Units of Production for Direct Materials and Conversion Costs
	Whole Units	Equivalent Units	Equivalent Units
		Direct Materials	Conversion
Inventory in process, beginning	9000	0	5850
Started and completed	198000	198000	198000
Transferred to finished goods	207000	198000	203850
Inventory in process, ending	14000	14000	3500
Total units	221000	212000	207350
c
	Costs Per Equivalent Unit
Direct Materials	2	=424000/212000
Conversion	1.8	=(268700+104530)/207350
d
cost of the units started and completed=198000*(2+1.8)= $752400