4_29 - Units started during April 100,000 Total units to...

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DATA INPUT Moravia Company Work in process, April 1 - 10,000 units: Direct material: 100% complete, cost of $22,000 Conversion: 20% complete, cost of 4,500 Balance in work in process, April 1 $26,500 Units started during April 100,000 Units completed during April and transferred to finished-goods inventory 80,000 Work in process, April 30: Direct material: 100% complete Conversion: 33.33% complete Costs incurred during April: Direct material $198,000 Conversion costs: Direct labor $52,800 Applied manufacturing overhead 105,600 Total conversion costs $158,400 SOLUTION 1. Physical flow of units Physical Units Work in process, April 1 10,000 Units started during April 100,000 Total units to account for 110,000 Units complete and transferred out during April 80,000 Work in process, April 30 30,000 Total units accounted for 110,000 2. Calculation of equivalent units Percentage Equivalent Units Physical Units of Completion Direct Material Conversion Work in process, April 1 10,000 20%
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Unformatted text preview: Units started during April 100,000 Total units to account for 110,000 Units completed and transferred out d 80,000 100% 80,000 80,000 Work in process, April 30 30,000 33.33% 30,000 10,000 Total units accounted for 110,000 Total equivalent units 110,000 90,000 3. Computation of unit costs Direct Material Conversion Total Work in process, April 1 $22,000 $4,500 $26,500 Costs incurred during April 198,000 158,400 356,400 Total costs to account for $220,000 $162,900 $382,900 Equivalent units 110,000 90,000 Costs per equivalent unit $2.00 $1.81 $3.81 4. Analysis of total costs Costs of goods completed and transferred out during April: $304,800 Cost remaining in April 30 work-in-process inventory: Direct material: 60,000 Conversion: 18,100 Total cost of April 30 work-in-process $78,100 Check: Cost of goods completed and transferred out $304,800 Cost of April 30 work-in-process inventory 78,100 Total costs accounted for $382,900...
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