Process Costing

1-The Abbot company is producing aproduct using process costing and during February it had 120 units onhand(in process) at 28thFebruary which were 100% complete as to materials added but only 40% complete as to conversion costs.

During March the Abbot company completed and transferred out 220 units. At 31 March there were 60 units in work in process which were 100% complete as to materials added but only 60% complete as to conversion costs

MaterialsConversion costs

Completedunits220220

WIP end6036

Equivalent Units280256

2-BrainblocksLtd makes interlocking children's blocks in a single processing department. Direct materials are added at the start of production. Conversion costs are added evenly throughout production.Brainblocksuses the weighted-average method of process costing.

The following information for October 2018 is available.

Physical Units

Work in process, 1 October

12,000

Started in October

48,000

Completed and transferred out during October

55,000

*Degree of completion(31 October): direct materials, 100%; conversion costs, 30%.

Total costs for October 2018

Work in process, beginning

Direct materials

$5,760

Conversion costs

$14,825

Added during October

Direct materials

$25,440

Conversion costs added during October

$58,625

1.Number of units in ending Work inProcess(WIP).

2.Number of equivalent units for Direct Material (DM) and Conversion Cost (CC).

3.Calculate the cost per equivalent unit for direct materials and conversion costs.

4.Summarise the total costs to account for, and assign them to units completed (and transferred out) and to units in ending work in process.