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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
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$
4. Analysis of total costs
Costs of goods completed and transferred out during April: 304,800$
Equivalent Units
