Answer:
Unit Information
Units charged to production:
Inventory in process, July 1 30000
Received from materials storeroom 155000
Total units accounted for 185000
Units to be assigned costs: Equivalent Units
Whole Units DM Conversion
Beginning 30,000 0 27,000
Std and comp 119,000 119,000 119,000
Transferred to 149,000 119,000 146,000
Ending 36,000 36,000 16,200
Total units 185,000 155,000 162,200
Materials Conversion (labor + overhead)
Total costs for the month 620,000 123,272
Total equivalent units 155,000 162,200
Cost per equivalent unit $4.00 $0.76
DM Conversion Total
Beginning $121,800.00
Incurred $620,000.00 $123,272.00 $743,272.00
Total costs accounted for $865,072.00
Beginning $121,800.00
To complete $20,520.00
Total beginning $142,320.00
Std and comp $566,440.00
Trasnferred $708,760.00
Ending $156,312.00
Total costs assigned $865,072.00
Explanation:
First we calcualte the physical units.
then the equivalent units.
we solve for equialent cost per unit by dividing the cost of the period by the equivalent unit
then, we make the cost reconciliation
notice how the cost accounted (beginning + incurred during the period)
matches the cost assigned (trasnferred + ending WIP inventory)
