Question Continuation
1. The number of physical units that were transferred out and the number that are in ending work in process inventory.
2. The number of equivalent units for materials and conversion for the month.
3. The cost per equivalent unit of materials and conversion for the month.
Answer:
See explanation below
Explanation:
1. .
Units to account for is given as:
Beginning (Work in Process) ------_--------- $2,000
Unit Started at the beginning (April) ----- $28,000
Total = $2,000 + $28,000 = $30,000
Calculating total units accounted for.
Units completed and transferred out ------- $23,000
Ending (Work in Process) ------------------------ $7,000
Total Units = $23,000 + $7,000 = $30,000
2.
Units completed and transferred out
=> $23,000 (units) => 100% (% Materials) => $23,000 (EUP Materials) => 100% (% Conversion) => $23,000 (EUP Conversion)
Units of ending work in process
=> $7,000 (units) => 100% (% Materials) => $7,000 (EUP Materials) => 40% (% Conversion) => $2,800 (EUP Conversion)
Equivalent Units of Production
=> $30,000 (units) => 100% (% Materials) => $30,000 (EUP Materials) => (% Conversion) => $25,800 (EUP Conversion)
3.
Cost per equivalent units of production
Cost of beginning work in process => $45,000 (Direct materials) => $56,320 (conversion)
Cost incurred during this period => $375,000 (Direct materials) => $341,000 (conversion)
Total Cost => $420,000 (Direct materials) => $397,320 (conversion)
Equivalent Units of Production => $30,000 (Direct materials) => $25,800 (conversion)
Cost per equivalent unit of production => $14.00 (Direct materials) => 15.40 (conversion)
Cost per equivalent unit of production is calculated by Total Cost / Equivalent unit of production
