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Unformatted text preview: work is done with respect to direct materials but only 9,500 equivalent units of work is done with respect to conversion costs. The Assembly Department cost per unit is, therefore, higher. SOLUTION EXHIBIT 17-16A Steps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units; Assembly Department of International Electronics for February 2007. (Step 2) (Step 1) Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Work in process, beginning (given) Started during current period (given) 10,000 To account for 10,000 Completed and transferred out during current period 9,000 9,000 9,000 Work in process, ending * (given) 1,000 1,000 100%; 1,000 50% 1,000 500 Accounted for 10,000 Work done in current period only 10,000 9,500 * Degree of completion in this department: direct materials, 100%; conversion costs, 50%....
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- Spring '10
- Cost Accounting