Reference no: EM132720145
Problem - Complete five-step procedure in second department
Nikki's Widgets experienced the following activity in its Third Department during December. Materials are added at the beginning of the process in the Third Department.
Units:
Work In Process, Dec. 1 (80% completed) 6,000 units
Transferred in 29,000 units
Completed during Dec. ?
Work in Process Dec 31 (70% complete) 7,000 units
Cost
Work in Process Dec. 1 (trans-in $21,600, DM $20,350 Conversion $27,690) $69,640
Transferred in during Dec. 97,400
Direct Materials added Dec 63,650
Conversion cost added in Dec. 90,750
Requirements -
1. Summarize flow of physical units and compute total equivalent units for three cost categories: transferred-in, direct materials, and conversion costs.
2. Summarize total costs to account for and compute the cost per equivalent unit for each cost category.
3. Assign total costs to (a) units completed and transferred to Finished Goods Inventory and (b) units in December 31 Work in Process Inventory.