Assessment Part 1: Computing Unit Cost for Department and For Completed Units with Beginning Inventory
Central Manufacturing has two production departments. Finishing had 2,000 units in process at the beginning of the period, three-fifths complete. During the period, 14,000 units were received from assembly, 13,000 units were transferred to the finished goods storeroom, and 3,000 units were in process at the end of the period, two-thirds complete. The cost of the beginning work in process was:
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Cost in assembly
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$12,000
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Cost in finishing:
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Materials
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600
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700
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Labor
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1,500
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1800
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Factory overhead
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900
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1000
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Costs During the Month
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Cost of goods received from assembly
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$84,000
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Cost in finishing:
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Materials
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4,800
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5500
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Labor
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15,000
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17500
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Factory overhead
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9,600
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10000
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Considering this information, determine (a) the unit cost for the month in finishing, (b) the total cost of the products transferred to finished goods, (c) the total cost of the ending work-in-process inventory.
Assessment Part 2: Calculating Equivalent Units
Central Manufacturing Company uses an average cost processing system. All materials are added at the start of the production process. Labor and overhead are added evenly at the same rate.
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Entry
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Units
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Beginning work in process May 1 (50% completed)
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1,000
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Started in May
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5,000
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Completed and transferred
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4,000
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On May 31, work is 75% completed as to labor and factory overhead. With that in mind, calculate equivalent units for (a) direct materials and (b) labor and overhead.
Attachment:- Assignment.rar