Question

The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units during November. The following production activity unit and cost information refers to the assembly department’s November production activities. Assembly Department Units Percent of DirectMaterials Added Percent ofConversion Added Beginning work in process 2,000 60 % 40 % Units transferred out 9,000 100 % 100 % Ending work in process 3,000 80 % 30

Answer 1

Answer:

Equivalent units

Materials              10,200

Covnersion Cost   9, 100

Explanation:

$\left[\begin{array}{cccc}& Physical Units& Materials& Conversion\\ Beginning&2,000&0.6&0.4\\ Transferred out&9,000&&\\ Ending&3,000&0.8&0.3\\ Equivalent Units&&10,200&9,100\\\end{array}\right]$

The equivalent units will be calcualte as follow:

 transferred out

 ending x completion

 (beginning x completion)  

Equivalent units

Materials

9,000 + 3,000 x 80% - 2,000 x 60% = 10,200

Conversion Cost

9,000 + 3,000 x 30% - 2,000 x 40% = 9,100