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    Equivalent Units and Cost Per Equivalent Unit

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    Iqra Abbas
    1. The document discusses the calculation of equivalent units and cost per equivalent unit for departments A and B. It involves calculating equivalent units based on direct material, direct labor, and factory overhead and then dividing total cost by equivalent units to get cost per unit. 2. The general journal entries record various transactions between Departments X and Y for direct material, payroll, and applied factory overhead. 3. The document shows the cost of production report for the Cutting and Forming Department for November. It calculates equivalent units, costs added, costs accountable, and cost per unit.

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    Equivalent Units and Cost Per Equivalent Unit

    Uploaded by

    Iqra Abbas
    51 views14 pages
    1. The document discusses the calculation of equivalent units and cost per equivalent unit for departments A and B. It involves calculating equivalent units based on direct material, direct labor, and factory overhead and then dividing total cost by equivalent units to get cost per unit. 2. The general journal entries record various transactions between Departments X and Y for direct material, payroll, and applied factory overhead. 3. The document shows the cost of production report for the Cutting and Forming Department for November. It calculates equivalent units, costs added, costs accountable, and cost per unit.

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    COST ACCOUNTING- IQRA ABBAS ASSIGNMENT (version 1).xlsb copy copy

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    1. The document discusses the calculation of equivalent units and cost per equivalent unit for departments A and B. It involves calculating equivalent units based on direct material, direct labor, and factory overhead and then dividing total cost by equivalent units to get cost per unit. 2. The general journal entries record various transactions between Departments X and Y for direct material, payroll, and applied factory overhead. 3. The document shows the cost of production report for the Cutting and Forming Department for November. It calculates equivalent units, costs added, costs accountable, and cost per unit.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    51 views14 pages

    Equivalent Units and Cost Per Equivalent Unit

    Uploaded by

    Iqra Abbas
    1. The document discusses the calculation of equivalent units and cost per equivalent unit for departments A and B. It involves calculating equivalent units based on direct material, direct labor, and factory overhead and then dividing total cost by equivalent units to get cost per unit. 2. The general journal entries record various transactions between Departments X and Y for direct material, payroll, and applied factory overhead. 3. The document shows the cost of production report for the Cutting and Forming Department for November. It calculates equivalent units, costs added, costs accountable, and cost per unit.

    Copyright:

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    Download as XLSX, PDF, TXT or read online from Scribd
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    of 14

    QUESTION 1

    EQUIVALENT UNITS AND COST PER EQUIVAL


    STEP 1-QUANTITY SCHEDULE:
    a)
    Units received from department A

    UNITS ACCOUNTED FOR


    b)
    Units completed and transferred to next department
    Units still in process
    (a=b)
    UNIT ACCOUNTABLE FOR

    STEP 2- EQUIVALENT UNIT OF PRODUCTION:

    Units completed and transferred to next department

    Units in process
    DM(5000*100%)
    DL(5000*80%)
    FOH(5000*60%)

    STEP 3- COST TO ACCOUNT FOR:

    Cost received from department A


    Cost added by department
    DIRECT MATERIAL
    DIRECT LABOR
    FACTORY OVERHEAD
    QUESTION 2
    Lathan corporation
    X and Y Department
    General Journal
    Account Title and Explanations

    1-
    Work in progress- Department X
    Work in progress- Department Y
    Direct Material
    2-
    Work in progress- Department X
    Work in progress- Department Y
    Payroll
    3-
    Work in progress- Department X
    Work in progress- Department Y
    Applied Factory Overhead
    4-
    Work in progress- Department Y
    Work in progress- Department X
    5-
    Finished Goods
    Work in progress- Department Y

    QUESTION 3
    Tyndol Fabricators Inc.
    Cutting and Forming Department
    Cost Of Production Report
    For November
    STEP 1-QUANTITY SCHEDULE:
    a)
    Beginning inventory
    Units started for production
    UNITS ACCOUNTED FOR

    Units completed and transferred to next department

    Units still in process


    (a=b)
    UNIT ACCOUNTABLE FOR

    STEP 2- EQUIVALENT UNIT OF PRODUCTION:


    Units completed and transferred to next department

    Units in process
    DM(600*75%)
    DL(600*40%)
    FOH(600*25%)

    STEP 3- COST TO ACCOUNT FOR:


    Cost added by department
    DIRECT MATERIAL
    DIRECT LABOR
    FACTORY OVERHEAD

    STEP 4- COST ACCOUNTABLE FOR


    Units transferred to next dept (3400*36.72)
    Ending units in process :
    DM(600*75%*22.48)
    DL(600*40%*0.25)
    FOH(400*25%*0.15)

    Total cost the department is accountable for


    EXPLANATION:
    TOTAL COST

    DM
    DL
    FOH

    QUESTION 4
    Tokyo Manufacturing Company
    Molding Department
    Cost Of Production Report
    For August
    STEP 1-QUANTITY SCHEDULE:
    a)
    Beginning inventory
    Units started for production
    UNITS ACCOUNTED FOR

    Units completed and transferred to next department

    Units still in process


    (a=b)
    UNIT ACCOUNTABLE FOR

    STEP 2- EQUIVALENT UNIT OF PRODUCTION:


    Units completed and transferred to next department

    Units in process
    DM(800*75%)
    DL(800*25%)
    FOH(800*25%)

    STEP 3- COST TO ACCOUNT FOR:


    Cost added by department
    DIRECT MATERIAL
    DIRECT LABOR
    FACTORY OVERHEAD

    STEP 4- COST ACCOUNTABLE FOR


    Units transferred to next dept (9200*8)
    Ending units in process :
    DM(800*75%*4.5)
    DL(800*25%*1.4)
    FOH(800*25%*2.1)

    Total cost the department is accountable for


    EXPLANATION:
    TOTAL COST

    DM
    DL
    FOH

    QUESTION 5
    Sttanislov Company
    Forming Department
    Cost Of Production Report
    For September
    STEP 1-QUANTITY SCHEDULE:
    a)
    Beginning inventory
    Units received from Cutting Department

    UNITS ACCOUNTED FOR


    b)
    Units completed and transferred to next department
    Units still in process
    (a=b)
    UNIT ACCOUNTABLE FOR

    STEP 2- EQUIVALENT UNIT OF PRODUCTION:

    Units completed and transferred to next department

    Units in process
    DM(1000*60%)
    DL(1000*30%)
    FOH(2000*30%)

    STEP 3- COST TO ACCOUNT FOR:

    Cost received from Cutting department


    Cost added by department
    DIRECT MATERIAL
    DIRECT LABOR
    FACTORY OVERHEAD

    STEP 4- COST ACCOUNTABLE FOR


    Units transferred to next dept (5000*31)
    Ending units in process :
    Cost of Cutting Department (1000*1OO%*14.9)
    DM(1000*60%*4.7)
    DL(1000*30%*3.8)
    FOH(1000*30%*7.6)

    Total cost the department is accountable for


    EXPLANATION:
    TOTAL COST
    Cost from Preceding department
    DM
    DL
    FOH
    QUESTION 1
    S AND COST PER EQUIVALENT UNIT

    25000

    25000

    20000
    5000

    25000

    DM DL FOH

    20000 20000 20000

    5000
    4000
    3000

    25000 24000 23000

    40000 25000 1.6


    Total cost(a) Equivalent units(b) Per unit (a/b)
    15000 25000 0.6
    9600 24000 0.4
    16330 23000 0.71

    80930 3.31
    ON 2
    poration
    partment
    ournal
    Amount (Rs)
    Debit Credit

    50,000
    40,000
    90,000

    80,000
    70,000
    150,000

    180,000
    70,000
    250,000

    300,000
    300,000

    448,000
    448,000

    QUESTION 3
    ndol Fabricators Inc.
    and Forming Department
    Of Production Report
    For November

    800
    3200
    4000

    3400

    600

    4000

    DM DL FOH
    3400 3400 3400

    450
    240
    150

    3850 3640 3550

    *Total cost(a) Equivalent units(b) Per unit (a/b)


    86548 3850 22.48
    17108 3640 4.7
    33796 3550 9.52

    137452 36.7

    124780
    10116
    1128
    1428
    12672

    137452

    TOTAL COST
    Beg Inventory (a) Ending Inventory (b) TC
    17923 68625 86548
    2352 14756 17108
    3800 29996 33796

    QUESTION 4
    Manufacturing Company
    olding Department
    Of Production Report
    For August

    1000
    9000
    10000

    9200

    800

    10000

    DM DL FOH
    9200 9200 9200
    600
    200
    200

    9800 9400 9400

    *Total cost(a) Equivalent units(b) Per unit (a/b)


    44100 9800 4.5
    13160 9400 1.4
    19740 9400 2.1

    77000 8

    73600

    2700
    280
    420
    3400

    77000

    TOTAL COST
    Beg Inventory (a) Ending Inventory (b) TC
    4120 39980 44100
    522 12638 13160
    961 18779 19740

    QUESTION 5
    ttanislov Company
    orming Department
    Of Production Report
    For September

    1400
    4600

    6000

    5000
    1000

    6000

    DM DL FOH

    5000 5000 5000

    600
    300
    300

    5600 5300 5300

    89400 6000 14.9


    Total cost(a) Equivalent units(b) Per unit (a/b)
    26320 5600 4.7
    20140 5300 3.8
    40280 5300 7.6

    176140 31

    155000

    14900
    2820
    1140
    2280
    21140

    176140

    TOTAL COST
    Beg Inventory (a) Ending Inventory (b) TC
    21120 68280 89400
    5880 20440 26320
    2614 17526 20140
    5228 35052 40280

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