Direct Materials Are Added at the Beginning of the Process

question 77

Essay

Direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include:
$\begin{array}{|l|r|}\hline \text { WIP beginning (40\% for conversion) } & 22,500 \text { units } \\\hline \text { Units started } & 130,000 \text { units } \\\hline \text { Units completed and transferred out } & 124,000 \text { units } \\\hline \text { WIP ending ( } 60 \% \text { for conversion) } & 28,500 \text { units } \\\hline \text { Beginning WIP direct materials } & \$ 51,900 \\\hline \text { Beginning WIP conversion costs } & \$ 20,174 \\\hline \text { Costs of materials added } & \$ 430,000 \\\hline \text { Costs of conversion added } & \$ 310,000 \\\hline\end{array}$
Required:
a.What are the total equivalent units for direct materials?
b.What are the total equivalent units for conversion costs?
c.What is the cost per equivalent unit for direct materials?
d.What is the cost per equivalent unit for conversion costs?
e.What is the total cost of units completed and transferred out?
f.What is the total cost of units remaining in ending WIP?

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Definitions:

Risks And Limitations

Concerns regarding potential negative outcomes and constraints that limit the effectiveness of a plan or project.

Percentage

A mathematical concept that represents a fraction of 100, commonly used to compare and quantify proportions.

Organizational Commitment

Refers to the psychological attachment and loyalty employees feel towards their company, influencing their willingness to remain and engage in productive work.

Outsourcing

The practice of hiring external firms or individuals to perform tasks, handle operations or provide services that are either difficult to manage or are outside the company's core competencies.