Question

1.In the Assembly Department, the cost of the beginning work in process was $20,520 ($16,560 direct materials and $3,960 conversion costs). During April $216,540 of direct materials were used, the direct labor cost was $120,000, and overhead costs incurred were $133,284. Prepare the second section of the production report for the Assembly Department showing the computation of the per unit costs. Use this section to answer the next three questions. What is the PER UNIT direct material cost?

2.What is the per unit cost for conversion costs?

3.For April, what is the TOTAL amount of cost to be assigned in the Assembly Department?

4.repare the final section of the production report assigning costs to the completed units and to the ending work in process inventory. Use this section to answer the next three questions. What is the total cost of goods manufactured for April for the Assembly Department?

additional info:

Total units assembly department abele to account for= 900 + 11700 = 12600 units

Total equivalent units for Direct Material costs for April = 12600 units

Total equivalent units for Conversion Costs for April = 11640 units

Answer 1

Balances as on March 31st

Direct Material $16,560

Conversion Cost $3,960

Total Beginning Goods in Process $20,520

Cost during April

Direct Material $2,16,540

Direct Labour $1,20,000

Overhead Cost $1,33,284

Total Cost Added in April $4,69,824

Total Cost ($469824+$20520) $4,90,344

Per Unit Direct Material Cost

Direct Material = $2,16,540

Add: Opening = $16,560

Direct Material Consumed = $2,33,100

Units = 12,600 units

Cost Per Unit = $18.5 Per Unit ($2,33,100/12,600)

2. Per Unit Cost of Conversion

Direct Labour $1,20,000

Overhead Cost $1,33,284

Add: Opening Conversion Cost $3,960

Total Conversion Cost $2,57,244

Units for Conversion Cost 11,640 units

Per Unit Conversion Cost $22.1 per unit ($2,57,244/11640)

3. Total Amount of Cost for the Month of April to be Assigned to Assembly Department

Total Cost Added in April $4,69,824 (as calculated above)