Calculation of Equivalent Units

Qt Material Labour Overheads

Work in process, May 1 80000 68600 30000 48000
Gallons started in process 760000
Gallons transferred out 790000 790000 790000 790000
Work in process, May 31 50000

Units Price per Gallons Amount Units

Work In Progress 56000 1.23 68600 60000
No of Units completed from previous month 24000 20000
Unit Introduced in and completed in current month 710000 710000
Unit Introduced in current month but not completed yet 40000 10000
Total No. of equivalent units completed in current month 774000 1.17 907200 740000

Cost of Unit Completed

Coming from last month 56000 1.23 68600 60000
Completed in current month 734000 1.17 860316.3 730000
790000 928916.3 790000
Cost of Unit Completed 1955916 Answer 3 (i)

Cost of WIP 40000 1.17 46883.72 10000

Cost of WIP 59883.72 Answer 3 (ii)
Labour rate per Gallons Amount Units Overhead rate per Gallons Amount
0.50 30000 60000 0.80 48000
20000
710000
10000
0.50 370000 740000 0.80 592000 Answer 1
Answer 2

0.5 30000 60000 0.8 48000

0.50 365000 730000 0.80 584000
395000 790000 632000

0.50 5000 10000 0.80 8000