Question 4
a.
Materials
Equivalent units needed to complete
beginning WIP inventory:
Materials: 800 x (100% - 90%)
Conversion: 800 x (100% - 10%)
Units started and completed during period:
23400 - 800
Equivalent units in ending WIP inventory:
Materials: 700 x 70%
Conversion: 700 x 70%
Equivalent units of production
Conversion
80
720
22,600
22,600
490
23,170
490
23,810
Materials
71,221
1,814
73,035
23,170
$3.15
Conversion
542,848
1,406
544,254
23,810
$22.86
b.
Costs added during period (a)
Costs in the beginning of the inventory (b)
Total costs (a+b)
Equivalent units of production (c)
Cost per equivalent unit (a+b)/c
c.
Equivalent units
Cost per equivalent unit
Cost in ending WIP inventory
Materials
490
3.15
$1,544
Conversion
490
22.86
$11,201
Total
Materials
1,814
3.15
Conversion
1,406
22.86
Total
3,220
80
720
3.15
$252
22.86
$16,459
$12,745
d.
Costs in beginning WIP inventory
Costs to complete units in beginning
WIP:
Equivalent units required to complete
the beginning WIP inventory
Costs per equivalent unit
Costs to complete the units in
beginning WIP inventory
$16,711