Equivalent Units of Production
Units of production data for the two departments of PacificCable and Wire Company for November of the current fiscal year areas follows:
Drawing Department Winding Department Work in process, November 1 7,400 units, 45% completed 3,700 units, 65% completed Completed and transferred to next
processing department during November 101,400 units 100,100 units Work in process, November 30 5,600 units, 75% completed 5,000 units, 30% completed
a. If all direct materials are placed inprocess at the beginning of production, determine the directmaterials and conversion equivalent units of production forNovember for the Drawing Department. If an amount is zero, enter in"0".
Drawing Department Direct Materials and Conversion Equivalent Units ofProduction ForNovember Whole Units Direct Materials
Equivalent Units Conversion
Equivalent Units Inventory in process, November 1 Started and completed in November Transferred to Winding Department inNovember Inventory in process, November 30 Total
b. If all direct materials are placed inprocess at the beginning of production, determine the directmaterials and conversion equivalent units of production forNovember for the Winding Department. If an amount is zero, enter in"0".
Winding Department Direct Materials and Conversion Equivalent Units ofProduction ForNovember Whole Units Direct Materials
Equivalent Units Conversion
Equivalent Units Inventory in process, November 1 Started and completed in November Transferred to finished goods inNovember Inventory in process, November 30 Total
2.
Costs per Equivalent Unit
The following information concerns production in the BakingDepartment for March. All direct materials are placed in process atthe beginning of production.
ACCOUNT Work in ProcessâBakingDepartment ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Mar. 1 Bal., 7,500 units, 4/5 completed 13,050 31 Direct materials, 135,000 units 175,500 188,550 31 Direct labor 51,540 240,090 31 Factory overhead 28,992 269,082 31 Goods finished, 136,800 units 259,620 9,462 31 Bal. ? units, 3/5 completed 9,462
a. Based on the above data, determine each costlisted below. Round "cost per equivalent unit" answers to thenearest cent.
1. Direct materials cost per equivalent unit. $ 2. Conversion cost per equivalent unit. $ 3. Cost of the beginning work in process completed duringMarch. $ 4. Cost of units started and completed during March. $ 5. Cost of the ending work in process. $
Equivalent Units of Production
Units of production data for the two departments of PacificCable and Wire Company for November of the current fiscal year areas follows:
| Drawing Department | Winding Department | |
| Work in process, November 1 | 7,400 units, 45% completed | 3,700 units, 65% completed |
| Completed and transferred to next processing department during November | 101,400 units | 100,100 units |
| Work in process, November 30 | 5,600 units, 75% completed | 5,000 units, 30% completed |
a. If all direct materials are placed inprocess at the beginning of production, determine the directmaterials and conversion equivalent units of production forNovember for the Drawing Department. If an amount is zero, enter in"0".
| Drawing Department | |||
| Direct Materials and Conversion Equivalent Units ofProduction | |||
| ForNovember | |||
| Whole Units | Direct Materials Equivalent Units | Conversion Equivalent Units | |
| Inventory in process, November 1 | |||
| Started and completed in November | |||
| Transferred to Winding Department inNovember | |||
| Inventory in process, November 30 | |||
| Total | |||
b. If all direct materials are placed inprocess at the beginning of production, determine the directmaterials and conversion equivalent units of production forNovember for the Winding Department. If an amount is zero, enter in"0".
| Winding Department | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct Materials and Conversion Equivalent Units ofProduction | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ForNovember | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Whole Units | Direct Materials Equivalent Units | Conversion Equivalent Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory in process, November 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Started and completed in November | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Transferred to finished goods inNovember | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory in process, November 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total 2. Costs per Equivalent Unit The following information concerns production in the BakingDepartment for March. All direct materials are placed in process atthe beginning of production.
a. Based on the above data, determine each costlisted below. Round "cost per equivalent unit" answers to thenearest cent.
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Related questions
Harmon Company uses the weighted average method in its processcosting system. The Curing Department of Harmon Company reportedthe following information for the month of November
Work in process, beginning | |
Units in process, November 1 | 10,000 |
Stage of completion with respect toconversion | 80% |
Costs in the beginninginventory: | |
Materials cost | $34,500 |
Conversion costs | $48,600 |
Units started into production during the month | 28,000 |
Units completed and transferred out | 30,000 |
Costs added to production during the month: | |
Materials cost | $146,000. |
Conversion cost | $194,400 |
Work in process, ending: | |
Units in process, November 30 | 8,000 |
State of completion with respect toconversion | 30% |
ALL MATERIALS ARE ADDED AT THE BEGINNING OF THEPROCESS
Required:
Complete the sections below.
Determine equivalent units of production
Equivalent Units
Materials | Conversion | |
Transferred to next department | ||
| Ending Work in Process: Materials Conversion | ||
Equivalent Units of Production |
Compute the costs per equivalent unit
Equivalent Units
Materials | Conversion | |
Cost of beginning work in process | ||
Cost added during the period | ||
Total Cost | ||
Equivalent units of production | ||
Cost per equivalent unit |
Determine the total cost of ending work in process inventory andthe total cost of units transferred to the next process
Materials | Conversion | Total | |
| Ending work in process inventory: Equivalent units of production Cost per equivalent unit Cost of ending work in process inventory | |||
| Units completed and transferred out: Units transferred to next department Cost per equivalent unit Costs of units completed & transferred out |
Prepare a report that reconciles the total costs assigned to theending work in process inventory and the units transferred out withthe costs in beginning inventory and costs added during theperiod
| Costs to be accounted for: Cost of beginning work in process inventory Costs added to production during the period Total cost to be accounted for: | |
| Costs accounted for as follows: Cost of ending work in process inventory Cost of units completed and transferred out Total cost accounted for |
The charges to Work in ProcessâAssembly Department for a period,together with information concerning production, are as follows.All direct materials are placed in process at the beginning ofproduction.
| Work inProcess-Assembly Department | |||
|---|---|---|---|
| Bal., 7,000 units, 70%completed | 29,260 | To Finished Goods,161,000 units | ? |
| Direct materials,165,000 units @ $1.8 | 297,000 | ||
| Direct labor | 429,000 | ||
| Factory overhead | 166,885 | ||
| Bal. ? units, 45%completed | ? | ||
Determine the following:
a. The number of units in work in processinventory at the end of the period.
units
b. Equivalent units of production for directmaterials and conversion. If an amount is zero or a blank, enter in"0".
| Work inProcess-Assembly Department | |||
| EquivalentUnits of Production for Direct Materials and Conversion Costs | |||
| Whole Units | Equivalent Units DirectMaterials | Equivalent UnitsConversion | |
| Inventory in process, beginning | |||
| Started and completed | |||
| Transferred to finished goods | |||
| Inventory in process, ending | |||
| Total units | |||
c. Costs per equivalent unit for directmaterials and conversion. If required, round your answers to thenearest cent.
| Costs Per Equivalent Unit | |
| Direct Materials | $ |
| Conversion | $ |
d. Cost of the units started and completedduring the period.
$
Cost of Production Report
The Cutting Department of Tangu Carpet Company provides thefollowing data for December 2016. Assume that all materials areadded at the beginning of the process.
| Work in process, December 1, 12,600 units, 65% completed | $157,878* | |
| *Direct materials (12,600 Ã $9.8) | $123,480 | |
| Conversion (12,600 Ã 65% Ã $4.2) | 34,398 | |
| $157,878 | ||
| Materials added during December from Weaving Department,194,000 units | $1,910,900 | |
| Direct labor for December | 372,855 | |
| Factory overhead for December | 455,712 | |
| Goods finished during December (includes goods in process,December 1), 196,200 units | â | |
| Work in process, December 31, 10,400 units, 45% completed | â |
a. Prepare a cost of production report for theCutting Department. If an amount is zero or a blank, enter in "0".For the cost per equivalent unit computations, round your answersto two decimal places.
| Tangu CarpetCompany | |||
| Cost ofProduction Report-Cutting Department | |||
| For the MonthEnded December 31, 2016 | |||
| UnitInformation | |||
| Units charged toproduction: | |||
| Inventory in process, December1 | |||
| Received from WeavingDepartment | |||
| Total units accounted for bythe Cutting Department | |||
| Units to be assignedcosts: | |||
| Equivalent Units | |||
| Whole Units | Direct Materials | Conversion | |
| Inventory in process, December1 | |||
| Started and completed inDecember | |||
| Transferred to finished goodsin December | |||
| Inventory in process, December31 | |||
| Total units to be assignedcost | |||
| CostInformation | |||
| Costs per equivalent unit: | |||
| Direct Materials | Conversion | ||
| Total costs for December inCutting Department | $ | $ | |
| Total equivalent units | |||
| Cost per equivalent unit | $ | $ | |
| Costs assigned toproduction: | |||
| Direct Materials | Conversion | Total | |
| Inventory in process, December1 | $ | ||
| Costs incurred in December | |||
| Total costs accounted for bythe Cutting Department | $ | ||
| Costs allocated to completedand partially completed units: | |||
| Inventory in process, December1 balance | $ | ||
| To complete inventory inprocess, December 1 | $ | ||
| Cost of completed December 1work in process | $ | ||
| Started and completed inDecember | $ | ||
| Transferred to finished goodsin December | $ | ||
| Inventory in process, December31 | |||
| Total costs assigned by theCutting Department | $ | ||
b. Compute and evaluate the change in cost perequivalent unit for direct materials and conversion from theprevious month (November). If required, round your answers to twodecimal places.
| Increase or Decrease | Amount | |
| Change in direct materials cost per equivalent unit | Increase | $ |
| Change in conversion cost per equivalent unit | Increase | $ |
