Question
T2-5 Calculate equivalent units (LO 3) Sury Company reported the following information for the month of April: Units Work in Process Beginning inventory, April 1
T2-5 Calculate equivalent units (LO 3) Sury Company reported the following information for the month of April:
| Units | |
| Work in Process | |
| Beginning inventory, April 1 | 8,000 |
| Added to production | 45,000 |
| Completed and transferred out | ? |
| Ending inventory, April 30 | 5,000 |
Ending inventory was 100% complete with respect to materials and 80% complete with respect to conversion costs.
Required
a.How many units were transferred out of Work in Process Inventory?
b.What were the equivalent units of production for materials?
c.What were the equivalent units of production for conversion?
T2-6 Assign costs to completed units and ending Work in Process Inventory (LO 4) Refer to the information in T2-5. Sury also reported the following cost information in April:
| Costs | ||
| Materials | Conversion | |
| Work in Process | ||
| Beginning inventory, April 1 | $11,000 | $ 17,160 |
| Added to production | 66,380 | 104,000 |
Required
a.What was the cost per equivalent unit for materials?
b.What was the cost per equivalent unit for conversion?
c.What cost would be assigned to the units transferred out of Work in Process Inventory?
d.What cost would be assigned to the ending Work in Process Inventory?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
