Step-by-step solution for No. 9 & 10

1) Units received from the shaping department this period = 3,000 Units

Input	Units	Output	Units
Units in Beginning Inventory	1,000	Units transferred to finished goods inventory this period	2,800
Units received from the shaping department this period (bal figure)	3,000	Units in Ending inventory	1,200
TOTAL	4,000		4,000

2) Equivalent Units of Materials

In FIFO method, the unit of beginning inventory is completed first and then Units received during the period is completed.

				Material
Inputs	Units	Output	Units	% Complete	Equivalent Unit
Beginning Inventory	1,000	Units transferred to finished goods inventory this period
		--- From Beginning Inventory	1,000	10%	100
		--- From the Units received from shaping department during the period	1,800	100%	1,800
Units received from shaping department during the period	3,000	Ending Work in process inventory	1,200	50%	600
	4,000		4,000		2,500

Equivalent Units for Material = 2,500 Equivalent Units

3) Equivalent units for labor

				Labor
Inputs	Units	Output	Units	% Complete	Equivalent Unit
Beginning Inventory	1,000	Units transferred to finished goods inventory this period
		--- From Beginning Inventory	1,000	20%	200
		--- From the Units received from shaping department during the period	1,800	100%	1,800
Units received from shaping department during the period	3,000	Ending Work in process inventory	1,200	40%	480
	4,000		4,000		2,480

Equivalent units for labor = 2,480 Equivalent Units

4) Equivalent units for overhead

				Overhead
Inputs	Units	Output	Units	% Complete	Equivalent Unit
Beginning Inventory	1,000	Units transferred to finished goods inventory this period
		--- From Beginning Inventory	1,000	20%	200
		--- From the Units received from shaping department during the period	1,800	100%	1,800
Units received from shaping department during the period	3,000	Ending Work in process inventory	1,200	40%	480
	4,000		4,000		2,480

Equivalent Units for Overhead = 2,480 Equivalent Units

5) Cost per equivalent units of Material

In FIFO method, cost per equivalent units of production is calculated by using cost added during the current period and divide by equivalent units of production. While calculating the equivalent cost per unit of production beginning WIP cost is ignored.

	Material
Material Costs added this period	$13,375
Material - Equivalent Product Units	2,500 Units
Cost per Equivalent unit of material (13,375 / 2,500)	$5.35 per equivalent unit

6) Cost per Equivalent Unit of Labor

	Labor
Labor Costs added this period	$9,672
Equivalent Units for labor	2,480 Units
Cost per Equivalent unit of labor ($9,672 / 2,480)	$3.90 per equivalent unit

7) Cost per equivalent units of factory overhead

	Factory Overhead
Factory Overhead added this period	$16,616
Equivalent Units for Factory Overhead	2,480 Units
Cost per Equivalent unit of labor ($16,616 / 2,480)	$6.70 per equivalent unit

8) Total Cost per Equivalent units

	Cost per Equivalent Unit
Material	$5.35
Labor	$3.90
Factory Overhead	$6.70
Total Cost per equivalent unit	$15.95

Handy Tool Company manufactures a product in two departments, Shaping and Assembly. The product is cut out of sheet metal, bent to shape, and painted in the Shaping Department Then, it is transferred to the Assembly Department where component parts purchased from outside vendors are added to the unit. A process cost system with a FIFO cost flow assumption is used to account for work in process inventories. Data related to November operations in the Assembly Department follow Units in beginning inventory (90% materials, 80% labor and 80% overhead) Units transferred to Finished Goods Inventory this period Units in ending inventory (50% materials, 40% labor and 40% overhead) 1,000 2,800 1,200 Inventory This Period 29,250 13,375 9,672 16,616 Costs charged to the department: Direct labor Factory overhead 3,500 4,900 Required Units received from the Shaping Department this period 2. Equivalent Units of Materials 3. Equivalent Units of Labor 4. Equivalent Units of Factory Overhead 5. Cost per equivalent units of Materials 6. Cost per equivalent units of Labor 7 Cost per equivalent units of Factory Overhead 8. Total Cost per equivalent units 9. Cost of units transferred from Assembly Department to Finished Good Inventory 10. Cost of units for ending Work in Process Inventory in Assembly Department