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Equivalent Units Calculation Summary

The document contains examples and solutions to exercises involving the weighted average and FIFO inventory costing methods. It includes calculations of equivalent units of production, cost per equivalent unit, and applying costs to units transferred out and ending work in process under each method. The exercises provide practice applying inventory costing concepts to the computation of equivalent units, unit costs, and assignment of costs to inventory and production.

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271 views3 pages

Equivalent Units Calculation Summary

The document contains examples and solutions to exercises involving the weighted average and FIFO inventory costing methods. It includes calculations of equivalent units of production, cost per equivalent unit, and applying costs to units transferred out and ending work in process under each method. The exercises provide practice applying inventory costing concepts to the computation of equivalent units, unit costs, and assignment of costs to inventory and production.

Uploaded by

rasyid_hasan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

EXERCISE 4-2 Computation of Equivalent Units-Weighted-Average Method [L02]

Answer :
Materials Conversion
Units transferred to the next department 190,000 190,000
Ending work in process :
Materials : 15000x80% 12000
Conversion : 15000x40% 6000
Equivalent units of production 202,000 196,000

EXERCISE 4-3 Cost per Equivalent Unit-Weighted-Average Method [LO3]

Answer :

Cost : Materials Labor Overhead


Cost of beginning work in process inventory $18,000 $5,500 $27,500
Cost added during the period $238,900 $80,300 $401,500
Total costs (a) $256,900 $85,800 $429,000
Equivalent units of production (b) $35,000 $33,000 $33,000
Cost per equivalent unit (a)/(b) $7.34 $2.6 $13

EXERCISE 4-4 Applying Costs to Units-Weighted-Average Method [LO4]

Answer :
Materials Conversion Total
Ending work in process inventory :
Equivalent units of production (a) 300 100
Cost per equivalent unit (see above) (b) $31.56 $9.32
$1040
0
Units completed and transferred out:
Units transferred to the next department (a) 1300 1300
Cost per equivalent unit (see above) (b) $31.56 $9.32
Cost of units transferred out (a)x(b) $41,028 $12,116
$53,14
4
EXERCISE 4-5 (Appendix 4A) Computation of Equivalent Units-FIFO Methods
[LO5]

Answer :
Materials Conversion
To complete beginning work in process:
Materials : 400 (100%-75%) 100
Conversion : 400 (100%-25%) 300
Units started and completed during the process 42,600 42,600
Ending work in process :
Materials : 500 x 80% complete 400
Conversion : 500 x 30% complete 150
Equivalent units of production 43,100 43,050

EXERCISE 4-6 (Appendix 4A) Cost per Equivalent Unit-FIFO Method [L06]

Answer :

Materials Labor Overhead Total


Cost added during the period (a) $193,320 $62,000 $310,000
Equivalent units of production(b) 27,000 25,000 25,000
Cost per equivalent unit (a)/(b) $7.16 $2.48 $12.4 22.04
EXERCISE 4-7 (Appendix 4A) Applying Costs to units-FIFO Method [LO7]

Answer :
Materials Conversion Total
Ending work in process inventory :
Equivalent units of production(a) 800 200
Cost per equivalent unit (see above) (b) $4.40 $1.30
Cost of ending work in process inventory (a)x(b) $3520 $260 $3780
Units transferred out :
Cost in beginning work in process inventory $2,700 $380 $3080
Cost to complete the units in beginning work
in process inventory :
Equivalent units of production required to
Complete the units in beginning inventory 400 700
Cost per equivalent units(see above) (b) $4.40 $1.30
Cost to complete the units in beginning
Inventory (a)x(b) $1,760 $910 $2670
Cost of units started and completed this period :
Units started and completed this period (a) 7,000 7,000
Cost per equivalent unit (see above) (b) $4.40 $1.30
Cost of units started and completed this
Period (a)x(b) $30,800 $9,100 $39,900
Total cost of units transffered out $45,650

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