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Exercise 3-13.

a. Calculate the cost per equivalent unit for materials and conversion costs
Solution: Computation of the cost per equivalent unit for materials and conversion costs
Units to account for: Physical units
Beginning work in process 4,000
Started during period 44,000
Total units to account for: 48,000
Units accounted for: Equivalent units Materials Conversion
Transferred out 45,000 45,000 45,000
Ending work in process 3,000 2,550 1,350
Total units accounted for: 48,000 47,550 46,350
Here, ending work in process materials = 3000 x 85% = 2,550 & conversion 3000 x 45% =1,350
Unit costs calculation:
Total costs (1) $854,850 $446,990 $407,880
Equivalent units (2) 47,550 46,350
Cost per equivalent unit (1)/ (2) $9.40 $8.80
Total cost per unit = $9.40 + $8.80 = $18.20
Here, total costs = $43,000 + $421,990 + $394,880 = $859,870
Material costs = $30,000 + $421,990 = $451,990
Conversion costs = $13,000 + $394,880 = $407,880

b. Calculate the cost of items completed during November.
Solution: Computation of the cost of items completed during November
Units completed = 45,000
Total cost per unit = $18.20
Cost of items completed during November = 45,000 x $18.20 = $819,000
Hence the cost of items completed during November is $819,000

c. Calculate the cost of ending Work in Process.
Solution: Computation of the cost of ending Work in Process.
Ending work in process units = 3,000
Equivalent material units & cost = 2,550 units x $9.40
Equivalent material units & cost = $23,970
Equivalent conversion units & cost = 1,350 units x $8.80
Equivalent conversion units & cost = $11,880
Total cost of ending Work in Process = $35,850
Exercise 3-14
Solution: Computation of the Reconciliation of Unit and Equivalent units
Reconciliation of Unit and Equivalent units

Quantities Physical Units Equivalent Units

Material Conversion