Sol: (1)

EI = 16,000 + 59,000 - 61,000 = 14,000 units.

Cost/EU = ($29,440 + 246,400)/(61,000 + 14,000 *.1)

= $4.4205 or $4.421 (Round off to three decimal places)

Sol: (2)

Transferred out of WIP to FG = 125,000 + 30,000 - 37,500 = 117,500 (from FG information).

EU = 117,500 * 100% + 8,000 *.75 = 123,500 units

Sol: (3)

Ending work-in-process inventory = 10,000 * $0.48 + 10,000 *.5 * $0.40 = $6,800

Sol: (4)

The cost per equivalent unit for conversion costs for January = ($10,973 + 268,107)/(50,300
+ 9,400*.2) = $5.348

Sol: (5) D. Less than the units started during the period.

Sol: (6) (1)

1. Equivalent Units of Production

Materials

Transferred to next department* 417,000

Ending work in process:

Materials: 60,000 units 65% complete 39,000

Conversion: 60,000 units 30% complete

Equivalent units of production 456,000

*Units transferred to the next department

= Units in beginning work in process + Units started into production Units in ending
work in process

= 109,500 + 367,500 60,000 = 417,000

(2)

2 Cost per Equivalent Unit

Mat Con
erial vers
s ion

Cost of beginning work in process $ 58,0 $ 12

35 2,64
0

Cost added during the period 553,0 381

05 ,960

Total cost (a) $611,0 $50

40 4,60
0

Equivalent units of production (b) 456,00 435,

0 500
 Cost per equivalent unit, (a) (b) $1.34 $1.1
6

(3)

Ending work in process inventory:

Equivalent units of production

(materials: 60,000 units 65% complete; conversion: 60,000 units
30% complete)
Cost per equivalent unit

Cost of ending work in process inventory

Units completed and transferred out:

Units transferred to the next department

Cost per equivalent unit

Cost of units completed & transferred out

4: Cost Reconciliation

Costs to be accounted for:

Cost of beginning work in process inventory

($58,035 + $122,640) $180,675

Costs added to production during the period

($553,005 + $381,960) 934,965

Total Cost $1,115,640

Costs accounted for as follows:

Transferred to the Coating Department

417,000 x $2.50 $1,042,500

Work in process, May 31

Materials at $1.34 per EU 52,260

Conversion at $1.16 per EU 20,880

Total ending Work in process 73,140

Total cost $1,115,640