## Answers

1) Equivalent unit :

Whole unit | % | EUP-Pulping | % | EUP-conversion | |

Units transferred out | 157000 | 100% | 157000 | 100% | 157000 |

Ending work in process | 8000 | 100% | 8000 | 25% | 2000 |

Total | 165000 | 165000 | 159000 | ||

2) Calculate cost per equivalent unit:

Pulping | Conversion | |

Beginning work in process | 4800 | 500 |

Cost added | 102450 | 31300 |

Total cost | 107250 | 31800 |

Equivalent unit | 165000 | 159000 |

Cost per equivalent unit | 0.65 | 0.2 |

3) Calculate cost of ending work in process

Pulping | Conversion | Total | |

Cost of ending work in process | 8000*.65 = 5200 | 2000*.20=400 | 5600 |

4_) Calculate cost of units transferred out

Pulping | Conversion | Total | |

Cost of units transferrred out | 157000*.65 = 102050 | 15700*.2 = 31400 | 133450 |

5) Cost reconciliation :

Cost to be accounted for | |

Beginning work in process(4800+500) | 5300 |

Cost added(102,450+31300) | 133750 |

Total cost to be accounted for | 139050 |

Cost accounted for as follows | |

Cost of units transferrred out | 133450 |

Cost of ending work in process | 5600 |

Total cost accounted for | 139050 |

IF ANY DOUBTS PLEASE MENTION IN COMMENT

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