What criticism can be made of the unit costs that you have computed if they are used to evaluate how well costs have been controlled?

 

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10 Part 1 11 Equivalent Units of Production 12 Materials Conversion 13 Transferred to next department 270,000 270,000 Stage of Completion Number of 14 Units 15 Ending work in process 16 Materials 17 Conversion 18 Equivalent units of production 45,000 45,000 45,000 100% 67% 30,000 300,000 315,000 19 20 Part 2 21 Costs per Equivalent Unit 22 23 Cost of boginning work in process 24 Cost added during the period 26 Total cost (a) 26 Equivalent units of production (b) 27 Cost per equivalent unit, (a) + (b) 28 29 Part 3 30 Cost of Ending Work in Process Inventory and Units Transferred Out 31 32 Ending work in process inventory: 33 Equivalent units of production Cost per equivalent unit 35 Materials Conversion 43 400 $ 397,600 $ 441,000 20,300 189,700 $ 210,000 315,000 1.40 $ 300,000 0.70 Materials Conversion Total Cost 45,000 1.40 $ 63,000 $ 30,000 0.70 21,000 $ 34 Cost of ending work in process inventory 38 %$4 84,000 Units completed and transferred out Units transferred to the next department 38 37 Cost per equivalent unit 39 270,000 %$4 270,000 0.70 $ $ 189,000 1.40 24 2.10 v Cost of units completed and Iransferred out $ 378,000 $ 567,000 Cover Given 6-13 Answer 6.13 10 Part 1 11 Equivalent Units of Production 12 Materials Conversion 13 Transferred to next department 270,000 270,000 Stage of Completion Number of 14 Units 15 Ending work in process 16 Materials 17 Conversion 18 Equivalent units of production 45,000 45,000 45,000 100% 67% 30,000 300,000 315,000 19 20 Part 2 21 Costs per Equivalent Unit 22 23 Cost of boginning work in process 24 Cost added during the period 26 Total cost (a) 26 Equivalent units of production (b) 27 Cost per equivalent unit, (a) + (b) 28 29 Part 3 30 Cost of Ending Work in Process Inventory and Units Transferred Out 31 32 Ending work in process inventory: 33 Equivalent units of production Cost per equivalent unit 35 Materials Conversion 43 400 $ 397,600 $ 441,000 20,300 189,700 $ 210,000 315,000 1.40 $ 300,000 0.70 Materials Conversion Total Cost 45,000 1.40 $ 63,000 $ 30,000 0.70 21,000 $ 34 Cost of ending work in process inventory 38 %$4 84,000 Units completed and transferred out Units transferred to the next department 38 37 Cost per equivalent unit 39 270,000 %$4 270,000 0.70 $ $ 189,000 1.40 24 2.10 v Cost of units completed and Iransferred out $ 378,000 $ 567,000 Cover Given 6-13 Answer 6.13