Susan Chu

40433485.xls Management Accounting

09/21/2010
1. Compute the equivalent units of production

Work in Process, beginning 10,000

Started into production 100,000
Ending work in process 15,000
units transferred out 95,000
Materials Conversion
Cost Costs
Units transferred out 95,000 95,000
Ending work in process
Materials: 15000*60% 9000
Conversion: 15000* 25% ____ 3750
Equivalent units of production 104,000 98,750

2. Compute the costs per equivalent unit for the month

Materials Conversion
Cost Costs
Beginning work in process $1,500 $7,200
cost added during May $154,500 $90,800
Total cost (a) $156,000 $98,000

Equivalent units production (b) 104,000 98,750

Cost per equivalent unit (a)/(b) $1.50 $0.99

3. Determine the cost of ending work in process inventory and of the units transferred out to the next department

Ending work in process units * cost per equivalent unit $22,500 $14,886

Work in Process, beginning 10,000

plus Started into production 100,000
less Ending work in process 15,000
units transferred out 95,000

Materials Conversion
Cost Costs Total Costs
Costs to be accounted for:
Cost of beginning work in process inventory $1,500 $7,200 $8,700
Costs added to productin during the period $154,500 $90,800 $245,300
Total cost to be accounted for $156,000 $98,000 $254,000

Costs accounting for as follows:

Cost of ending work in process inventory $13,500 $3,722 $17,222
Cost of units transferred out $142,500 $94,278 $236,778
Total cost accounted for $254,000