Question - Chang's Office Furniture manufactures office furniture be using an assembly-line process. All direct materials are introduced at the start of the process, and conversion cost is incurred evenly throughou manufacturing. An examination of the company's work-in-process account for August revealed the following select information:
August 1 balances 900 units, 30% complete
Value of beginning inventory $133,800*
Production started in Aug 2,700 units
Direct Materials used during Aug $270,000
Aug conversion cost $154,200
Production completed 2,100 units
Supplementary records disclosed direct materials cost of $90,000 and conversion cost of 43,800
Conversations with manufacturing personnel revealed that the ending work in process was 80% complete.
a. Determine the number of units in the Aug 31 WIP inventory.
b. Calculate the total equivalent units with respect to conversion.
c. Calculate the cost per equivalent unit with respect to conversion in Aug.
d. Determine the cost of the Aug 31 WIP inventory.