Question

A)

The Filling Department of Eve Cosmetics Company had 3,700 ounces in beginning work in process inventory (60% complete). During the period, 53,300 ounces were completed. The ending work in process inventory was 2,700 ounces (50% complete).

What are the total equivalent units for conversion costs?

If required, round to the nearest unit.

B)

The Filling Department of Eve Cosmetics Company had 9,400 ounces in beginning work in process inventory (40% complete). During the period, 58,700 ounces were completed. The ending work in process inventory was 2,900 ounces (60% complete).

What are the total equivalent units for direct materials if materials are added at the beginning of the process?

C)

The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $179,490. The conversion cost for the period in the Filling Department is $318,750. The total equivalent units for direct materials and conversion are 57,900 ounces and 62,500 ounces, respectively.

Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent.

Direct materials cost per equivalent unit:	$ per ounce
Conversion costs per equivalent unit:	$ per ounce

D)

The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $0.80 and $1.55, respectively. The equivalent units to be assigned costs are as follows:

	Equivalent Units
	Direct Materials		Conversion
Inventory in process, beginning of period	0		5,100
Started and completed during the period	64,000		64,000
Transferred out of Filling (completed)	64,000		69,100
Inventory in process, end of period	6,000		1,800
Total units to be assigned costs	70,000		70,900

The beginning work in process inventory had a cost of $3,420. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.

Completed and transferred-out production	$
Inventory in process, ending	$

Answer 1

Answers : -

1. 56,130 units

Calculation - (3700 x 40%) + 53,300 + (2700 x 50%) = 56,130

2. 66,080 units

Calculation - (9,400 × 60%)+ 58,700 + (2,900 × 60%) = 66,080

3. Direct material cost per equivalent unit = $3.1

Calculations - $179,490 ÷ 57,900 = $3.1

Conversion cost per equivalent units = $5.1

Calculations - $318,750 ÷ 62,500 = $5.1

4. Completed and transferred out production - direct material = 64,000 × 0.80 = 51,200 and conversion = 107,105

Inventory in process, ending = 6,000 × 0.80 = 4800 (direct material) and conversion = 1,800 × 1.55 = 2,790