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Ling Company has two departments, assembly and finishing
Ling Company has two departments, assembly and finishing. Consider the following data for the Assembly Department: Direct Complete Material 90% Direct Labor Overhead Total $ 2475 Begrining work in process Started during the month Completed during the month Ending work in process Costs added during month Units 2.000 18,000 15.000 5.000 $ 11,700 S 6,750 S 4,050 $ 22.500 Required: 1) Compute the number of equivalent whole units for the Assembly Department. 2) Calculate the cost per equivalent whole unit. Round your answer to 4 decimal places. 3) Compute the amount of costs that should be transferred to the Finishing Department. Round your answer to the nearest cent. 4) Compute the amount of costs that should be assigned to the 2,500 units in ending inventory. Round your answer to the nearest cent.
Expert Solution
| Particulars | Direct Materials | % complete | Equivalent Mat | Conversion | % Complete | Equivalent Conv |
| Opening WIP | 2,000 | 10% | 200 | 2,000 | 10% | 200 |
| Units started and completed (15,000-2,000) | 13,000 | 100% | 13,000 | 13,000 | 100% | 13,000 |
| Ending WIP | 5,000 | 60% | 3,000 | 5,000 | 60% | 3,000 |
| 1) Equivalent Units | 16,200 | 16,200 | ||||
| Current Month Costs | 11,700 | 10,800 |
| 2) Cost per equivalent units | 0.72 | 0.67 | ||||
| Ending WIP units | 3,000 | 3,000 | ||||
| 3) Cost of Ending WIP | 2,166.67 | 2,000 | ||||
| Units transferred | 13,200 | 13,200 | ||||
| 4)Cost of units transferred | 9,533.33 | 8,800 | ||||
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