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DanielleCPA
DanielleCPA, Certified Public Accountant (CPA)
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Experience:  CPA experienced in tax and financial planning
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The following information concerns production in the Banking

Customer Question

The following information concerns production in the Banking Department for March. All direct materials are placed in process at the beginning of production.

a. Determine the number of units in work in process inventory at the end of the month.
b. Determine the equivalent units of production for direct materials and conversion cost in MARCH.

Determine:
1. Direct materials cost per equivalent unit.
2. Conversion cost per equivilant unit.
3. Cost of the beginning work in process completed during MARCH.
4. Cost of units started and completed during MARCH.
5. Cost of the ending work in process.

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in MARCH?
Submitted: 5 years ago.
Category: Finance
Expert:  DanielleCPA replied 5 years ago.

DMC :

Hi and welcome to Just Answer! I'm happy to help answer your Finance questions. Feel free to interject at any time if you need clarification.

Expert:  DanielleCPA replied 5 years ago.

Hi, the information you provided is just text, no numbers.. There is no financial information. Can you please provide it? Thanks

Customer: replied 5 years ago.
graphicgraphic
Expert:  DanielleCPA replied 5 years ago.
Thanks! Will get you this ASAP.
Customer: replied 5 years ago.
Thanks
Expert:  DanielleCPA replied 5 years ago.

Was a breakdown of the beginning materials and conversion costs provided in the problem? I have the total but not the breakdown. Was there anything?

Expert:  DanielleCPA replied 5 years ago.
And what method are you using to compute equivalent units? FIFO or weighted-average?
Customer: replied 5 years ago.

FIFO

Customer: replied 5 years ago.

FIFO....PLEASE LET ME KNOW IF YOU GOING TO HELP ME WITH THIS ONE

Expert:  DanielleCPA replied 5 years ago.
A. Units in WIP
Beginning Units + Units Started - Units Transferred Out
8,000+145,000-148,000=5,000
Units Started and Completed
Units Transferred Out - Beginning Units
148,000-8000=140,000
Expert:  DanielleCPA replied 5 years ago.
MaterialsConversion Costs
Units% CompleteEquiv. Units% CompleteEquiv. Units
Beg WIP Completed8,000 0%- 60%4,800
Started & Completed140,000 100%140,000 100%140,000
Ending WIP5,000 100%5,000 60%3,000

Equiv units material = 145,000

equiv units conversion costs = 147800

Expert:  DanielleCPA replied 5 years ago.
1. DM Cost/Unit
232,000/145,000 = 1.6
2. Conversion Cost/Unit
(66,400+37,060)/147,800 = .7
3. Beg WIP completed during March
15360 + (4800 * 0.7)=18,720
4. Cost of units started and completed during march
140,000 * (1.6 + .7) = 322,000
5. Cost of ending WIP
10,100
B. DM same, conversion cost increase, decrease, same?
Decrease
Customer: replied 5 years ago.

I don't see the answer for these questions.

 

Determine:
1. Direct materials cost per equivalent unit.
2. Conversion cost per equivilant unit.
3. Cost of the beginning work in process completed during MARCH.
4. Cost of units started and completed during MARCH.
5. Cost of the ending work in process.

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in MARCH?

Expert:  DanielleCPA replied 5 years ago.

The answers are immediately above your reply, but just in case.

 

1. $1.6

2. $.7

3. 18,720

4. 322,000

5. 10,100

 

B. Decrease

Customer: replied 5 years ago.

Can you specify the first A & B just the total because I am not sure with all those numbers ....

Expert:  DanielleCPA replied 5 years ago.

Sure, sorry for the poor formatting above.

 

A) 5,000 units in WIP

B) Direct materials = 145,000 equivalent units

Conversion Costs = 147,800 equivalent units

DanielleCPA, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 781
Experience: CPA experienced in tax and financial planning
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