Question

The inventory at June 1 and costs charged to Work in Process—Department 60 during June are as follows: 3,800 units, 80% completed ($25,000 materials, $35,400 conversion) $60,400 Direct materials, 32,000 units $368,000 Direct labor $244,000 Factory overhead $188,000 Total cost to be accounted for $860,400 During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units that were 40% completed. Inventories are costed by the weighted average method and all materials are added at the beginning of the process. Determine the following: Round cost per unit answers to two decimal places, if necessary. Round equivalent units and total cost to the nearest whole number. Equivalent units of production for conversion cost. Conversion cost per equivalent unit Material cost per equivalent unit Total and unit cost of finished goods completed in the current period Unit cost of finished goods completed. Total cost of work in process inventory on June 30

          The inventory at June 1 and costs charged to Work in Process—Department 60 during June are as follows:
3,800 units, 80% completed ($25,000 materials, $35,400 conversion)
$60,400
Direct materials, 32,000 units
$368,000
Direct labor
$244,000
Factory overhead
$188,000
Total cost to be accounted for
$860,400
During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units that were 40% completed. Inventories are costed by the weighted average method and all materials are added at the beginning of the process.

Determine the following:
Round cost per unit answers to two decimal places, if necessary. Round equivalent units and total cost to the nearest whole number.

Equivalent units of production for conversion cost.
Conversion cost per equivalent unit
Material cost per equivalent unit
Total and unit cost of finished goods completed in the current period
Unit cost of finished goods completed.
Total cost of work in process inventory on June 30

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Added by Ignacio W.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Adi S

05/11/2024

Step 1

Since all materials are added at the beginning of the process, the equivalent units for materials will be the same as the number of units completed during June (31,200) plus the number of units in ending inventory (4,600). So, equivalent units for materials = Show more…

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The inventory at June 1 and costs charged to Work in Process—Department 60 during June are as follows: 3,800 units, 80% completed ($25,000 materials, $35,400 conversion) $60,400 Direct materials, 32,000 units $368,000 Direct labor $244,000 Factory overhead $188,000 Total cost to be accounted for $860,400 During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units that were 40% completed. Inventories are costed by the weighted average method and all materials are added at the beginning of the process. Determine the following: Round cost per unit answers to two decimal places, if necessary. Round equivalent units and total cost to the nearest whole number. Equivalent units of production for conversion cost. Conversion cost per equivalent unit Material cost per equivalent unit Total and unit cost of finished goods completed in the current period Unit cost of finished goods completed. Total cost of work in process inventory on June 30

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Transcript

00:01 In the question, it's given 3800 units, 80 % completed at $25 ,000 which is the material and $35 ,400 the conversion.

00:23 The total amount in dollars is 6400.

00:28 Now the direct material of 32 ,000 units.

00:36 It's given 368 ,000.

00:40 Now the next comes the direct labor which is 244 ,000.

00:48 Now coming to the factory overhead.

00:53 Factory overhead it is 188 ,000.

00:59 So total cost to be accounted for it is 864 hundred dollars.

01:12 Now coming to the a part which is equivalent units of production.

01:24 It is the completed and transferred unit, completed and transferred units which is 100 % plus closing work in progress units percentage completed is 40%, 40 % completed.

01:58 So, it comes out as here v1200 into 100 % plus 4600 into 40%.

02:13 So, it gives 33040.

02:18 This is the desired answer for year x.

02:24 This is the a answer.

02:26 Coming to the b part, the conversion cost per equivalent unit and material cost per equivalent unit.

02:51 So the first is the total conversion cost which is the direct labor plus factory overheads which comes out as 35 ,400 plus 244 ,000 plus 188 ,000.

03:18 So it gives 467 ,400.

03:25 So the total conversion cost is 467 ,400.

03:36 Coming to the next part, it talks about conversion cost here...

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