Practice Calculations Problem 14-A2. The

Practice Calculations Problem 14-A2. The completed units are counted whole. The incomplete units are pro-rated on the basis of how complete they are. The equivalent units would be 18,000 + (.5)(2000) = 19,000. The unit cost would be $95,000 / 19,000 = $5 per unit. The cost of the units completed and sent to testing would be (18,000)(5) = $90,000. The cost of the ending work in progress is (2000)(.5)(5) = $5,000. This reflects the total units in progress, the degree of completion and the full production cost per unit. Problem 14-A3. The first step is to calculate the unit costs.

There were 10,000 in the beginning inventory, 80,000 units started and 70,000 completed. The cost of goods sold for the work finished includes 10,000 units already in progress and 60,000 full units. The unit cost for direct materials is easy to calculate, since direct materials are added at the beginning of the process. Thus, 80,000 units were started in the month: $852,000 / 80,000 = $10.65 per unit. For conversion cost per unit, we can figure this out from the works in progress inventory: $37,500 = (10,000)(.25)x; therefore $37,500 / 2500x; x = $15 per unit. So for the 70,000 units completed in July: (70,000)(15 + 10.65) = $1,795,500 2.

The ending works in progress is 20,000. The total cost should be (20,000)(25.65) = 513,000 Note: These figures represent the total cost of the goods, not the total cost in July of the goods. The question is worded a little bit funny so I wasn't sure which one it was intended to be. Problem 14-21. Problem 14-21 1 2 3 4 DM Inv, 2010 8 8 5 2 Purchased 5 9 10 8 Used 7 11 7 3 DM Inv, 2011 6 6 8 7 Problem 14-22-1. Goods Completed 72,000 WIP Inventory.