Question

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., 7,000 units, 55% completed	28,770	To Finished Goods, 161,000 units	?
Direct materials, 165,000 units @ $1.8	297,000
Direct labor	535,900
Factory overhead	208,400
Bal. ? units, 75% 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 inventory Unit = 7000+165000-161000 = 11000 Units

b) Equivalent unit :

	Whole units	Direct material	Conversion
Inventory in process, beginning	7000	7000*0% = 0	7000*45% = 3150
Started and completed (161000-7000)	154000	154000*100% = 154000	154000*100% = 154000
Transferred to finished goods	161000	154000	157150
Inventory in process, ending	11000	11000*100% = 11000	11000*75% = 8250
Total Units	172000	165000	165400

c) Cost per equivalent unit :

Direct material = 297000/165000 = $1.80 per equivalent unit

Conversion = (535900+208400)/165400 = $4.50 per equivalent unit

d) Cost of unit started and completed = (4.5+1.8)*154000 = $970200