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., 3,000 units, 60% completed	9,840	To Finished Goods, 69,000 units	?
Direct materials, 71,000 units @ $1.3	92,300
Direct labor	175,600
Factory overhead	68,350
Bal., ? units, 50% completed	?

Cost per equivalent units of $1.30 for Direct Materials and $3.50 for Conversion Costs.

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

1.

Cost of beginning work in process inventory completed this period = 3000*40%*$3.50 = $4,200

2.

Units started and completed = 69000 - 3000 = 66000

Cost of units transferred to finished goods = Cost of beginning work in process inventory completed this period + cost of units started an dcompleted

= $4200 + 66000*($1.30+3.50) = $321,000

3.

Units at end = 3000 + 71000 - 69000 = 5000

Cost of ending work in process inventory = 5000*$1.30 + 5000*50%*$3.50 = $15,250

4.

Cost per unit of the completed beginning work in process inventory = (9840 + 4200) / 3000 = $4.68