Answer:
Pat Koontz
a. The cost of necklaces completed during January = $96.16
b. The cost of necklaces in ending WIP inventory = $24.40
Explanation:
a) Data and Calculations:
Glass Metal Natural Total
Beads $24 $15 $ 7 $46
Direct labor (1.5 hours) 15 15 15 45
Overhead (based on 1.5 hours) 8 8 8 24
Total cost of production $47 $38 $30 $115
Glass Metal Natural
Units started 70 25 35 130
Ending WIP 5 13 7 25
Units completed 65 12 28 105
Equivalent units:
Glass Metal Natural
Mat. Conv Mat. Conv Mat. Conv
Units completed 65 65 12 12 28 28
Ending WIP 5 3 13 8 7 4
Equivalent units 70 68 25 20 35 32
Cost per equivalent unit:
Glass Metal Natural
Mat. Conv Mat. Conv Mat. Conv Total
Cost of production $24 $23 $15 $23 $7 $23 $115
Equivalent units 70 68 25 20 35 32
Cost per equivalent $0.42 $0.34 $0.60 $1.15 $0.20 $0.72
Glass Metal Natural Total
Mat. Conv Mat. Conv Mat. Conv
Cost per equivalent $0.42 $0.34 $0.60 $1.15 $0.20 $0.72
Equivalent units of
Units completed 65 65 12 12 28 28
Units completed $27.3 $22.1 $7.2 $13.8 $5.6 $20.16 $96.16
Glass Metal Natural Total
Mat. Conv Mat. Conv Mat. Conv
Cost per equivalent $0.42 $0.34 $0.60 $1.15 $0.20 $0.72
Ending WIP (equiva.) 5 3 13 8 7 4
Total cost $2.1 $1.02 $7.8 $9.2 $1.4 $2.88 $24.40
