Assign total costs to units completed and transferred

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3. Assign total costs to units completed and transferred out and to units in ending work inprocess.(Step 1) (Step 2)Equivalent UnitsFlow of Production Physical UnitsDirect MaterialsConversion CostsWork in process beginning 5,000Started during current period 20,000To account for25,000Completed & transferred out during current period22,50022,50022,500Work in process, ending 2,500(2,500 × 100%; 2,500 × 70%)2,5001,750Accounted for 25,000Equivalent units of work done to date 25,00025,000Total Production Direct MaterialsConversion CostsCosts(Step 3)Work in process, beginning $1,652,750 $1,250,000 $402,750 Costs added in current period6,837,5004,500,0002,337,500Total costs to account for$8,490,250 $5,750,000 $2,740,250 (Step 4)Costs incurred to date$5,750,000 $2,740,250 Divide by equivalent units of work done to date ÷ 25,000÷ 24,250Cost per equivalent unit of work done to date$230 $113 (Step 5) Assignment of costs:Completed & transferred out (22,500 units)$7,717,500 (22,500 × $230)(22,500 × $113)Work in process, ending (2,500 units)772,750(2,500 × $230)(1,750 × $113)Total costs accounted for$8,490,250 $5,750,000 $2,740,250 Direct materials25,000 equivalent unitsConversion costs24,250 equivalent units

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