The assembly department has the following production data for the current month.

Beginning Units Ending Work in Process Transferred Out Work in Process

–0– 20,000 12,000 Materials are entered at the beginning of the process. The ending work in process units are 70% complete as to conversion costs. Compute the equivalent units of production for

(a) materials and

(b) conversion costs.

Do it! 16-4 In March, Kelly Company had the following unit production costs: materials

$10 and conversion costs $8. On March 1, it had zero work in process. During March, Kelly transferred out 22,000 units. As of March 31, 4,000 units that were 40% complete as to conversion costs and 100% complete as to materials were in ending work in process.

(a) Compute the total units to be accounted for.

(b) Compute the equivalent units of production.

(c) Prepare a cost reconciliation schedule, including the costs of materials transferred out and the costs of materials in process.

AppendixLO1