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., 3,000 units, 25% completed	6,825	To Finished Goods, 69,000 units	?
Direct materials, 71,000 units @ $1.4	99,400
Direct labor	195,600
Factory overhead	76,100
Bal. ? units, 65% completed	?

Determine the following:

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

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) Ending work in process = 3000+71000-69000 = 5000 Units

b) Equivalent unit of production

	Whole unit	Equivalent Units Direct Materials	Equivalent Units Conversion
Inventory in process, beginning	3000	0	3000*75% = 2250
Started and completed	66000	66000	66000
Transferred to finished goods	69000	66000	68250
Inventory in process, ending	5000	5000	5000*65% = 3250
Total units	74000	71000	71500

c) Cost per equivalent unit

Direct material = 99400/71000 = 1.40

Conversion = (195600+76100)/71500 = 3.80

d) Unit started and completed = (1.40+3.80)*66000 = $343200