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Costs Analysis - Single Department (No beginning inventory) The following data appeared in the accounting records of Department I of Ultima Company: Started in process 12,000 units Completed and transferred 10,500 units Work in process, end (2/5 complete) 1,500 units Costs: Materials P 72,000 Labor 88,800 Overhead 44,400 One half of the materials are added at the beginning of the process and the balance when the units are one-half completed
Costs Analysis - Single Department (No beginning inventory)
The following data appeared in the accounting records of Department I of Ultima Company:
Started in process 12,000 units
Completed and transferred 10,500 units
Work in process, end (2/5 complete) 1,500 units
Costs:
Materials P 72,000
Labor 88,800
Overhead 44,400
One half of the materials are added at the beginning of the process and the balance when the units are one-half completed.
Required:
1. EUP for materials and conversion costs.
2. Cost of the units completed and transferred.
3. Cost of the units in process at the end of the month.
Expert Solution
| 1) Computation of EUP for Materials and Conversion Costs: | ||
| Materials | Conversion cost | |
| Units completed and transferred out | 10500 | 10500 |
| Work in process, Ending: | ||
| 1500 * 1/2 | 750 | |
| 1500 * 2/5 | 600 | |
| Equivalent units of production | 11250 | 11100 |
| 2) Cost of Units Completed and Transferred: | |||
| Materials | Conversion | ||
| Total Costs (a) | 72000 | 133200 | 133200 |
| Equivalent units of production (b) | 11250 | 11100 | |
| Cost per Equivalent unit (a/b) | 6.4 | 12 | |
| Materials | Conversion | Total | |
| Units completed and transferred out (a) | 10500 | 10500 | |
| Cost per Equivalent unit (b) | 6.4 | 12 | |
| Cost of Units completed and transferred out (a*b) | 67200 | 126000 | 193200 |
| 3) Cost of Units in Process at the End of the Month: | |||
| Materials | Conversion | Total | |
| Work in Process, Ending Units (a) | 750 | 600 | |
| Cost per Equivalent unit (b) | 6.4 | 12 | |
| Cost of Ending Units in Process (a*b) | 4800 | 7200 | 12000 |
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