Question

the charges to work in process-assembly department for a period, together with information concerning production, are as follows. all direct materials are placed in process at the beginning of production.

work in process-assembly department
bal., 30,000 units, 40% completed: 1,075,500
direct materials, 400,000 units @ $11.25: 4,500,000
direct labor: 4,012,000
factory overhead: 20,060,000
bal., ? units, 30% completed: ?
to finished goods, 406,000 units: ?

cost per equivalent units of $11.25 for direct materials and $60.00 for conversion costs.

a. based on the above data, determine the different costs listed below.

1. cost of beginning work in process inventory completed this period
2. cost of units transferred to finished goods during the period
3. cost of ending work in process inventory
4. cost per unit of the completed beginning work in process inventory (rounded to the nearest cent.)

b. did the production costs change from the preceding period?

c. assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?

Explanation:

Determine physical flow and ending inventory units

Using the Process Costing knowledge point

$$
LATEXBLOCK0
$$

Calculate cost of beginning work in process completed

Using the FIFO Method and Equivalent Units knowledge points

$$
LATEXBLOCK1
$$

Calculate cost of units transferred to finished goods

Using the FIFO Method and Process Costing knowledge points

$$
LATEXBLOCK2
$$

Calculate ending work in process cost and unit cost

Using the FIFO Method and Equivalent Units knowledge points

$$
LATEXBLOCK3
$$

Analyze cost changes from preceding period

Using the Process Costing knowledge point

$$
LATEXBLOCK4
$$

Answer:

Question a

1. Cost of beginning work in process inventory completed this period:

$ \$2,155,500</blank>

1. Cost of units transferred to finished goods during the period:

$ \$28,945,500</blank>

1. Cost of ending work in process inventory:

$ \$702,000</blank>

1. Cost per unit of the completed beginning work in process inventory:

$ \$71.85</blank>

Question b

Did the production costs change from the preceding period?
<blank>Yes, decreased</blank>

Question c

Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?
<blank>Decrease</blank>