Managerial Accounting
BBUS2541 – ASSIGNMENT #3
Q1 – Exercise 4-18
Percentage of Physical Completion w/respect Equivalent Units Units to conversion Direct Material Conversion
Work in Process, October 1 1,000 40%
Units Started during October 5,000
Total Units to account for 6,000
Units from beginning WIP, completed
& transferred out during October 1,000 100% 1,000 1,000
Units started & completed during Oct 3,000 3,000 3,000
Work in Process, Oct 31 (20% as to con) 2,000 20% 2,000 400
Total Equivalent Units 6,000 6,000 4,400
Q2 – Exercise 4-21 Direct Material Conversion Total
Work in Process, November 1 $ 65,000 $180,000 $245,000
Costs Incurred $425,000 $690,000 $1,115,000
Total Costs to Account for: $490,000 $870,000 $1,360,000
Equivalent Units 7,000 1,740
Costs Per Equivalent Unit $70.00 $500.00 $570.00
Q3 – Problem 4-28
1. Analysis of Physical Flow of Units:
Physical Units in beginning Work in Process: 50,000
Add: Physical Units started 200,000
Less: Physical Units completed & transferred out 190,000
Equals: Physical units in ending Work in Process 60,000
2. Calculation of Equivalent Units % of completion w/respect Physical Units to conversion Direct Materials Conversion
Work in Process, June 1 50,000 40%
Units started during June 200,000
Total units to account for 250,000
Units completed & transferred
Out during June 190,000 100% 190,000 190,000
Work in Process, June 30 60,000 60% 60,000 36,000
Total Equivalent Units 250,000 250,000 226,000
3. Computation of Unit Costs
Direct Materials Conversion Total
Work in Process, June 1 $120,000 $ 34,400 $154,400
Costs incurred during June $492,500 $349,800 $842,300
Total costs to account for $612,500 $384,200 $996,700
Equivalent Units 250,000 226,000
Costs per Equivalent Unit $2.45 $1.70
Q1 – Exercise 4-18
Percentage of Physical Completion w/respect Equivalent Units Units to conversion Direct Material Conversion
Work in Process, October 1 1,000 40%
Units Started during October 5,000
Total Units to account for 6,000
Units from beginning WIP, completed
& transferred out during October 1,000 100% 1,000 1,000
Units started & completed during Oct 3,000 3,000 3,000
Work in Process, Oct 31 (20% as to con) 2,000 20% 2,000 400
Total Equivalent Units 6,000 6,000 4,400
Q2 – Exercise 4-21 Direct Material Conversion Total
Work in Process, November 1 $ 65,000 $180,000 $245,000
Costs Incurred $425,000 $690,000 $1,115,000
Total Costs to Account for: $490,000 $870,000 $1,360,000
Equivalent Units 7,000 1,740
Costs Per Equivalent Unit $70.00 $500.00 $570.00
Q3 – Problem 4-28
1. Analysis of Physical Flow of Units:
Physical Units in beginning Work in Process: 50,000
Add: Physical Units started 200,000
Less: Physical Units completed & transferred out 190,000
Equals: Physical units in ending Work in Process 60,000
2. Calculation of Equivalent Units % of completion w/respect Physical Units to conversion Direct Materials Conversion
Work in Process, June 1 50,000 40%
Units started during June 200,000
Total units to account for 250,000
Units completed & transferred
Out during June 190,000 100% 190,000 190,000
Work in Process, June 30 60,000 60% 60,000 36,000
Total Equivalent Units 250,000 250,000 226,000
3. Computation of Unit Costs
Direct Materials Conversion Total
Work in Process, June 1 $120,000 $ 34,400 $154,400
Costs incurred during June $492,500 $349,800 $842,300
Total costs to account for $612,500 $384,200 $996,700
Equivalent Units 250,000 226,000
Costs per Equivalent Unit $2.45 $1.70