Question

During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units that were 40% completed. Inventories are costed by the weighted average method and all materials are added at the beginning of the process. Determine the following: Round cost per unit answers to two decimal places, if necessary. Round equivalent units and total cost to the nearest whole number. a. Equivalent units of production for conversion cost. units b. Conversion cost per equivalent unit and material cost per equivalent unit. Conversion cost $ per equivalent unit Material cost $ per equivalent unit c. Total and unit cost of finished goods completed in the current period. Unit cost of finished goods completed: $ Total cost of goods completed during the period: $ d. Total cost of work in process inventory at June 30.

Answer 1

a. Equivalent units of production for conversion cost.

760 + 27,400 + 1,840 = 30,000

b. Conversion cost per equivalent unit and material cost per equivalent unit.

cost per equivalent unit for conversion costs = $14.15

cost per equivalent unit for materials = $10.98

c. Total and unit cost of finished goods completed in the current period.

unit cost of goods completed = $14.15 + $10.98 = $25.13

total units completed x units cost = $25.13 x 31,200 = $784,056

d. Total cost of work in process inventory at June 30.

materials costs = 4,600 x $10.98 = $50,508

conversion costs = 1,840 x $14.15 = $26,036

total = $76,544

Step-by-step explanation:

some numbers are missing, so I looked them up:

beginning work in process 3,800 units

100% materials ($25,000), 0% materials added

80% conversion ($35,400), 20% materials added x 3,800 = 760 equivalent units

units started and completed = 31,200 - 3,800 = 27,400

ending work in process = 32,000 + 3,800 - 31,200 = 4,600

100% materials x 4,600 = 4,600 equivalent units

40% conversion x 4,600 = 1,840 equivalent units

using weighted average method:

total materials costs = $368,000 + $25,000 (beginning WIP) = $393,000

cost per equivalent unit for materials = $393,000 / (3,800 + 32,000) = $10.97765363 ≈ $10.98

total conversion costs = $432,000 + $35,400 (beginning WIP) = $467,400

cost per equivalent unit for conversion costs = $467,400 / (3,800 + 27,400 + 1,840) = $14.1464891 ≈ $14.15