Process Costing Study: Unit Costs and Equivalent Units

School: Camosun College - Course: ACCT 220 - Subject: Accounting

Acct 220 - chapter 18 1. What is the unit cost of an assembled camera in January? DM = 900,000/12,000$75.00 Conversion cost = 957,600/12,00079.80 Total cost$ 154.80 2. What are the EU for DM and Conversion costs and their respective costs per EU? Step 1: Physical Flow of UnitsStep 2: Equivalent Units of Inventory: DMCONVTransferred Beg WIP0 + started12,000 + transferred in0 =Worked on12000 - End WIP3000300015000 = Units Completed90009,0009,0000 = Total EU1200010500 2b. What is the unit cost of an assembled camera in Feb? Steps 3 & 4TotalsDMCONVTransferred Beg WIP Cost$0--- + Current Period Cost$1,857,600900,000957,600- = Total Costs to Acct ForStep 3$1,857,600900,000957,600-

÷ Total EU (from Step 2 above)12,00010,500- $16675.0091.20- 3. Why the difference in the answer b/w 1 and 2? The conversion cost/unit is more, as AA incurred the same conversion costs, but spread them over fewe 4. Assume - Calculate the cost of completed units Step 5: Costs Assignment TotalsDMCONVTransferred $361,800$225,000$136,800 =75*EU9000 1,495,800675,000820,800 Total Cost Assigned:$1,857,600900,000957,600 Dr. Finished Goods1,495,800 Cr. WIP1,495,800