Question
Production Fabrication Co. Equivalent Units of Production Materials Labor Overhead Units transferred to next process... 350,000 350,000 350,000 Ending WIP Inv. (80,000 units x 50%
Production Fabrication Co.
Equivalent Units of Production
Materials
Labor
Overhead
Units transferred to next process...
350,000
350,000
350,000
Ending WIP Inv. (80,000 units x 50% complete; labor 80,000 units x 25% complete; overhead 80,000 units x 25% complete)
40,000
20,000
20,000
Equivalent units of production
410,000
370,000
370,000
Production Fabrication Co.
Costs Per Equivalent Unit
Materials
Labor
Overhead
Costs:
Costs beginning WIP Inventory
92,000
21,000
37,000
Costs added this period
810,000
325,000
640,000
Total Costs:
902,000
346,000
677,000
Equivalent units of production
410,000
370,000
370,000
Cost per unit
Project Fabrication, Co.
Costs of Ending WIP Inventory and Units Transferred Out
Ending WIP Inventory:
Materials
Labor
Overhead
Total
Equivalent units of production
40,000
20,000
20,000
Cost per equivalent unit
Cost of ending WIP inventory (round to nearest dollar)
143,298
Units of completed and transferred out:
Units transferred to the next dept.
350,000
350,000
350,000
Cost per equivalent unit
Cost of units completed and transferred out (round to the nearest dollar)
1,739,500
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Business Accounting
Authors: Jill Collis, Andrew Holt, Roger Hussey
3rd Edition
113752149X, 9781137521491
