Actuals are in for quarter one.You sold 5% less units than you budgeted for (round to a whole unit), but price per unit was $16.50.

a.Calculate revenue

b.Compute the cost of goods sold (total and per unit) before adjusting for actual OH cost (there was not any beginning finished goods inventory

for Q1)

Info to help in previous questions solution:

Solution: EQUIVALENT PRODUCTION : Input (In Units) Flow of Production Physical Units (in Units) Equivalent Units Transferred in Material Conversion cost Beginning work in 12,000 process Units Transferred in 160,000 Completed and transferred out Ending Work in process 162,000 162,000 (100%) 162,000 (100%) 162,000**** (100%) 10,000 10,000 (100%) 9,000 (90%) 3,000 (30%) Units accounted to 172,000 Units Accounted 172,000 for Equivalent Units 172,000 171,000 165,000 COST OF PRODUCTION PER EQUIVALENT UNIT: Transferred in Material Conversion $ 104,000 $ 10,350 $ 1,669.30+78.20 Beginning work in process Cost added 1,327,040 126,450 Cost accounted for =1,431,040 Equivalent Units of Production = 136,800 172,000 Units 171,000 Units 58,275+2,677.50 = 62,700 165,000 Units Cost Per Equivalent unit (Cost accounted for/ Equivalent Units of Production) $8.32 $0.80 $0.38 COST OF UNITS TRANSFERRED OUT: Particulars Cost Equivalent elements Production Units Cost per unit In $ Cost In $ Total cost In $ Units transferred out Transferred in 162,000 8.32 Material 162,000 0.80 Conversion 162,000 0.38 1,347,840 129,600 61,560 1,539,000 COST OF UNITS ENDING WORK IN PROCESS: Particulars Cost Equivalent Cost per unit Cost Total cost elements Production Units In $ In $ In $ Ending work in Transferred in 10,000 8.32 83,200 Material 9,000 0.80 process 7,200 Conversion 3,000 0.38 1,140 91,540