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  • 17-19 Page 631 Physical Direct Conversion Units Materials Costs

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    Misty Dawn Bancroft
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    The document summarizes the flow of production for a company's work in process for the month of May 2009. It shows that the beginning work in process was 80 units with 90% completion of direct materials and 40% of conversion costs. By the end of May, work in process was 120 units with 60% completion of direct materials and 30% of conversion costs. A total of 460 units were completed during the month while accounting for all physical units, direct materials, and conversion costs.

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    The document summarizes the flow of production for a company's work in process for the month of May 2009. It shows that the beginning work in process was 80 units with 90% completion of direct materials and 40% of conversion costs. By the end of May, work in process was 120 units with 60% completion of direct materials and 30% of conversion costs. A total of 460 units were completed during the month while accounting for all physical units, direct materials, and conversion costs.

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    Attribution Non-Commercial (BY-NC)
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    38 views4 pages

    17-19 Page 631 Physical Direct Conversion Units Materials Costs

    Uploaded by

    Misty Dawn Bancroft
    The document summarizes the flow of production for a company's work in process for the month of May 2009. It shows that the beginning work in process was 80 units with 90% completion of direct materials and 40% of conversion costs. By the end of May, work in process was 120 units with 60% completion of direct materials and 30% of conversion costs. A total of 460 units were completed during the month while accounting for all physical units, direct materials, and conversion costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    17-19 Page 631

    Physical Direct Conversion


    Units Materials Costs
    Beginning WIP (May 1) 80 $493,360 $91,040
    Started in May 2009 500
    Completed during May 2009 460
    Ending WIP (May 31) 120
    Total Costs added during May 2009 $3,220,000 $1,392,000

    Degree of completion May 1 90% 40%


    Degree of completion May 31 60% 30%

    (Step 2)
    (Step 1) Equivalent Units
    Physical Direct Conversion
    Flow of Production Units Materials Costs
    Beginning WIP (May 1) 80
    Started in May 2009 500
    Units to account for 580
    Completed and transferred out 460 460 460 100%
    Ending WIP (May 31) 120 72 36
    Accounted For 580 532 496
    Work done to date
    Completed
    17-27 Page 633
    Physical Transferred- Direct
    Units (tons) in Costs Materials
    Work in process, beginning inventory (June 1) 75 $75,000 $0
    Degree of completion, beginning work in process 100% 0%
    Transferred-in during June 135
    Completed and transferred out during June 150
    Work in process, ending inventory (June 30) 60
    Degree of completion, ending work in process 100% 0%
    Total costs added during June $142,500 $37,500

    (Step 1) (Step 2)
    Equivalent Units
    Physical Transferred- Direct
    Flow of Production Units in Costs Materials
    Work in process, beginning (given) 75
    Transferred-in during current period (given) 135
    To account for 210
    Completed and transferred out during current period: 150 150 150
    Work in process, ending 60 60 0
    Accounted for 210
    Work done to date 210 150

    Total
    Production Transferred- Direct
    Costs in Costs Materials
    (Step 3) Work in process, beginning (given) $105,000 $75,000 $0
    Costs added in current period (given) 258,000 142,500 37,500
    Costs incurred to date $217,500 $37,500
    Equivalent units of work done to date 210 150
    Cost per equivalent unit of work done to date $1,035.71 $250.00
    (Step 4) Total costs to account for $363,000
    (Step 5) Assignment of costs:
    Completed and transferred out costs $275,934 $155,357 $37,500
    Work in process, ending 87,066 62,143 0
    Total costs accounted for $363,000 $217,500 $37,500
    Conversion
    Costs
    $30,000 $105,000
    60%

    75%
    $78,000

    (Step 2)
    uivalent Units
    Conversion
    Costs

    150
    45

    195

    Conversion
    Costs
    $30,000
    78,000
    $108,000
    195
    $553.85

    $83,077
    24,923
    $108,000

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