Ask Question
17 February, 17:02

Direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

WIP beginning (50% for conversion) 28,400 units

Units started 124,000 units

Units completed and transferred out 107,000 units

WIP ending (50% for conversion) 45,400 units

Beginning WIP direct materials $53,200

Beginning WIP conversion costs $19,600

Costs of materials added $442,100

Costs of conversion added $304,650

Required:

a. What are the total equivalent units for direct materials?

b. What are the total equivalent units for conversion costs?

c. What is the cost per equivalent unit for direct materials?

d. What is the cost per equivalent unit for conversion costs?

e. What is the total cost of units completed and transferred out?

f. What is the total cost of units remaining in ending WIP?

+4
Answers (1)
  1. 17 February, 19:50
    0
    a. What are the total equivalent units for direct materials?

    152,400 units

    b. What are the total equivalent units for conversion costs?

    129,700 units

    c. What is the cost per equivalent unit for direct materials?

    Total Direct Materials Cost

    $495,300

    Cost per equivalent unit = Total Direct Materials Cost / total equivalent units for direct materials

    $3.25

    d. What is the cost per equivalent unit for conversion costs?

    Total conversion costs

    $324,250

    Cost per equivalent unit = Total conversion costs / total equivalent units for conversion

    $2.50

    e. What is the total cost of units completed and transferred out?

    $615,250

    f. What is the total cost of units remaining in ending WIP?

    $204,300

    Explanation:

    a. What are the total equivalent units for direct materials?

    Completed and Transferred (107,000 * 100%) = 107,000 units

    Ending Work In Process (45,400 * 100%) = 45,400 units

    Total equivalent units = 152,400 units

    b. What are the total equivalent units for conversion costs?

    Completed and Transferred (107,000 * 100%) = 107,000 units

    Ending Work In Process (45,400 * 50%) = 22,700 units

    Total equivalent units = 129,700 units

    c. What is the cost per equivalent unit for direct materials?

    Total Direct Materials Cost

    Beginning Work In Process $53,200

    Added $442,100

    Total Direct Materials $495,300

    Cost per equivalent unit = Total Direct Materials Cost / total equivalent units for direct materials

    = $495,300 / 152,400 units

    = $3.25

    d. What is the cost per equivalent unit for conversion costs?

    Total conversion costs

    Beginning Work In Process $19,600

    Added $304,650

    Total conversion costs $324,250

    Cost per equivalent unit = Total conversion costs / total equivalent units for conversion

    =$324,250 / 129,700 units

    = $2.50

    e. What is the total cost of units completed and transferred out?

    Raw Materials ($3.25 * 107000) = $347,750

    Conversion ($2.50 * 107000) = $267,500

    Total $615,250

    f. What is the total cost of units remaining in ending WIP?

    Raw Materials ($3.25 * 45,400) = $147,550

    Conversion ($2.50 * 22,700) = $56,750

    Total $204,300
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: WIP ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers