The Inventory at June 1 and Costs Charged to Work

question 145

Essay

The inventory at June 1 and costs charged to Work in Process-Department 60 during June are as follows: During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units which were 40% completed. Inventories are costed by the average cost method and all materials are added at the beginning of the process.
Determine the following, presenting your computations:
a) Equivalent units of production for conversion cost
b) Conversion cost per equivalent unit and material cost per equivalent unit.
c) Total and unit cost of finished goods completed in the current period
d) Total cost of work in process inventory at June 30

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of numbers, indicating how spread out the numbers are from the mean.

Expected Return

The weighted average of all possible returns from an investment, where each return is weighted by its probability of occurring.

Real Estate Project

An initiative involving the purchase, improvement, management, or sale of property assets for the purpose of generating profits or revenue.

Risk-Free Asset

An investment that is expected to return its original value without any loss, theoretically free from default risk.