I am stumped on this one homework assignment.  Can someone please help me figure it out step by step?  Thanks!!!Cost of Units Completed and in ProcessThe 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 DepartmentBal., 4,000 units, 65% completed13,200To Finished Goods, 92,000 units?Direct materials, 94,000 units @ $2188,000  Direct labor137,900  Factory overhead53,620  Bal. ? units, 30% completed?   a.  Based on the above data, determine the different costs listed below.If required, round your interim calculations to two decimal places.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?

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Asked Sep 15, 2019
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I am stumped on this one homework assignment.  Can someone please help me figure it out step by step?  Thanks!!!

Cost of Units Completed and in Process

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., 4,000 units, 65% completed 13,200 To Finished Goods, 92,000 units ?
Direct materials, 94,000 units @ $2 188,000    
Direct labor 137,900    
Factory overhead 53,620    
Bal. ? units, 30% completed ?    

 

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

If required, round your interim calculations to two decimal places.

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?

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Expert Answer

Step 1

Hi, Since you have asked multiple question, we will solve the first question for you. If you want any specific question to be solved then please specify the question number or post only that question. Thanks

In the solution , we have used FIFO method, which is commonly used in inevntory calculation.

Also, Work in progress will be referred as WIP as commonly the name used in business terms.

 

Step 2

Part a.

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

We have 4000 units bought forward as beginning inventory. These are 65% completed.

As per FIFO method, first these units will be completed for remaining 35% work. Pls refer table to find the calculations.

The cost of beginning WIP completed in this period will be $1,46,032

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Cost of beginning completed in this period Units Value Percentage completion 4000 13,200 65% completed 65800 Material used for remaining 35% completion (188000*35%) 48265 Labour used for remaining 35% completion( 137900*35%) 18767 Factory overhead used for remaining 35% completion (53620*35%) 4000 1,46,032 Total

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Step 3

2.  Cost of units transferred to finished goods during the period.

As we can see in the question, the finished goods are 92,000. As per FIFO method, 4000 units from beginning WIP and 88000...

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Cost of unit transferred to finished goods 92000 units Value for 94000 units Units Cost of beginning WIP completed in this period- from step 2 From step 2 1,46,032.00 4000 188000 1,76,000.00 pro-rated for 88000 units For 94000 Cost of balance 88000 units 137900 1,29,097.87pro-rated for 88000 units For 94000 For 94000 53620 50,197.45 pro-rated for 88000 units Total 5,01,327.32

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