carlberg company has two manufacturing departments, assembly and painting. the assembly department started…

carlberg company has two manufacturing departments, assembly and painting. the assembly department started 10,700 units during november. the following production activity in both units and costs refers to the assembly departments november activities.\n\nassembly department\tunits\tpercent complete for direct materials\tpercent complete for conversion\nbeginning work in process inventory\t3,000\t70%\t30%\nunits started this period\t10,700\nunits completed and transferred out\t10,000\nending work in process inventory\t3,700\t90%\t30%\n\ncost of beginning work in process\ndirect materials\t$ 977\nconversion\t779\t$ 1,756\ncosts added this month\ndirect materials\t12,353\nconversion\t21,441\t33,794\n\nqs 16 - 11 (algo) weighted average: cost per eup lo p1\n\ncalculate the assembly departments cost per equivalent unit of production for materials and for conversion for november. use the weighted average method.\n\ncost per equivalent unit of production (eup)\tdirect materials\tconversion\ncosts transferred out\t$ 30,000\t$ 20,196\ncost of ending work in process\t5,550\t2,076\ntotal costs\t$ 35,550\t$ 22,272\nequivalent units of production\t14,130\t11,910\ncost per equivalent unit of production\t$ 0.94

carlberg company has two manufacturing departments, assembly and painting. the assembly department started 10,700 units during november. the following production activity in both units and costs refers to the assembly departments november activities.\n\nassembly department\tunits\tpercent complete for direct materials\tpercent complete for conversion\nbeginning work in process inventory\t3,000\t70%\t30%\nunits started this period\t10,700\nunits completed and transferred out\t10,000\nending work in process inventory\t3,700\t90%\t30%\n\ncost of beginning work in process\ndirect materials\t$ 977\nconversion\t779\t$ 1,756\ncosts added this month\ndirect materials\t12,353\nconversion\t21,441\t33,794\n\nqs 16 - 11 (algo) weighted average: cost per eup lo p1\n\ncalculate the assembly departments cost per equivalent unit of production for materials and for conversion for november. use the weighted average method.\n\ncost per equivalent unit of production (eup)\tdirect materials\tconversion\ncosts transferred out\t$ 30,000\t$ 20,196\ncost of ending work in process\t5,550\t2,076\ntotal costs\t$ 35,550\t$ 22,272\nequivalent units of production\t14,130\t11,910\ncost per equivalent unit of production\t$ 0.94

Answer

Explanation:

Step1: Calculate equivalent - units of production for direct materials

Equivalent - units of production for direct materials = Units completed and transferred out+ (Ending work in process inventory×Percent complete for direct materials) $= 10000+(3700×0.9)=10000 + 3330=14130$

Step2: Calculate total direct materials cost

Total direct materials cost = Cost of beginning work in process - direct materials+Costs added this month - direct materials $=977 + 12353=13330$

Step3: Calculate cost per equivalent - unit of production for direct materials

Cost per equivalent - unit of production for direct materials=$\frac{Total\ direct\ materials\ cost}{Equivalent\ units\ of\ production\ for\ direct\ materials}$ $=\frac{13330}{14130}\approx0.94$

Step4: Calculate equivalent - units of production for conversion

Equivalent - units of production for conversion = Units completed and transferred out+ (Ending work in process inventory×Percent complete for conversion) $=10000+(3700×0.3)=10000 + 1110=11110$

Step5: Calculate total conversion cost

Total conversion cost = Cost of beginning work in process - conversion+Costs added this month - conversion $=779+21441 = 22220$

Step6: Calculate cost per equivalent - unit of production for conversion

Cost per equivalent - unit of production for conversion=$\frac{Total\ conversion\ cost}{Equivalent\ units\ of\ production\ for\ conversion}$ $=\frac{22220}{11110}=2$

Answer:

Cost per equivalent unit of production for direct materials: $$0.94$ Cost per equivalent unit of production for conversion: $$2$