Answers
Working of 1 & 2 as follows:
Material | % Completion | Equivalents materials | Labor | % Completion | Equivalents Labor | Overhead | % Completion | Equivalents overhead | Total | |
Opening WIP | 87000 | 30% | 26100 | 87000 | 45% | 39150 | 87000 | 45% | 39150 | |
Units started and completed (850,000-87,000) | 763,000 | 100% | 763000 | 763,000 | 100% | 763000 | 763,000 | 100% | 763000 | |
Ending WIP | 66,000 | 50% | 33000 | 66,000 | 25% | 16500 | 66,000 | 25% | 16500 | |
Equivalents units (A) | 822100 | 818650 | 818650 | |||||||
Currrent month cost (B) | $986,250 | $491,190 | $654,920 | $2,132,360 | ||||||
Cost per equivalent units (B/A) | $1.20 | $0.60 | $0.80 | $3 |
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