Question

#7 - 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., 5,000 units, 45% completed	18,100	To Finished Goods, 115,000 units	?
Direct materials, 118,000 units @ $2	236,000
Direct labor	332,300
Factory overhead	129,265
Bal. ? units, 70% 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 inventory = 5000+118000-115000 = 8000

b) Equivalent unit of production

	Whole unit	Equivalent Units Direct Materials	Equivalent Units Conversion
Inventory in process, beginning	5000	0	5000*55% = 2750
Started and completed	110000	110000	110000
Transferred to finished goods	115000	110000	112750
Inventory in process, ending	8000	8000	8000*70% = 5600
Total Units	123000	118000	118350

3) Cost per equivalent unit

Direct material = 236000/118000 = 2

Conversion = (332300+129265)/118350 = 3.90

4) Unit started and completed = 5.90*110000 = $649000