DATA INPUT
Moravia Company
Work in process, April 1 – 10,000 units:
Direct material: 100% complete, cost of 22,000$
Conversion: 20% complete, cost of 4,500
Balance in work in process, April 1 26,500$
Units started during April 100,000
Units completed during April and transferred to finished-goods inventory 80,000
Work in process, April 30:
Direct material: 100% complete
Conversion: 33.33% complete
Costs incurred during April:
Direct material 198,000$
Conversion costs:
Direct labor 52,800$
Applied manufacturing overhead 105,600
Total conversion costs 158,400$
SOLUTION
1. Physical flow of units
Physical Units
Work in process, April 1 10,000
Units complete and transferred out during April 80,000
2. Calculation of equivalent units
Percentage
Physical Units of Completion Direct Material Conversion
Units completed and transferred out during April
Work in process, April 1 10,000 20%
Units started during April 100,000
3. Computation of unit costs Direct Material Conversion Total
Work in process, April 1 22,000$ 4,500$ 26,500$
Costs incurred during April 198,000 158,400 356,400
Equivalent units 110,000 90,000
Costs per equivalent unit 2.00$ 1.81$ 3.81$
4. Analysis of total costs
Costs of goods completed and transferred out during April: 304,800$
Total cost of April 30 work-in-process 78,100$
Check: Cost of goods completed and transferred out 304,800$
Cost of April 30 work-in-process inventory 78,100
Equivalent Units