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    Equivalent units and costs

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    King Company has two departments, assembly and finishing. Consider the following data for the Assembly Department:

    Units Percent Direct Direct
    Complete Material Labor Overhead Total

    Beginning work in process 1,000 90% 2,475
    Started during the month 9,000
    Completed during the month 7,500
    Ending work in process 2,500 60%

    Costs added during the month $11,700 $6,750 $4,050 $22,500

    (1) Compute the number of equivalent whole units for the Assembly Department.
    (2) Calculate the cost per equivalent whole unit.
    (3) Compute the amount of costs that should be transferred to the Finishing Department.
    (4) Compute the amount of costs that should be assigned to the 2,500 units in ending inventory.

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    https://brainmass.com/business/accounting/equivalent-units-and-costs-136742

    Solution Summary

    The solution explains how to calculate the equivalent units and the related costs

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