Explanation Equivalent units: It is the units with respect to the degree of completion under the work in process inventory. It is determined by multiplying total units under consideration with degree of respective completion accordingly with the material cost and conversion cost. Given: Beginning work in process inventory is 25,000 units. Transferred in units are 229,000. Ending work in process inventory is 30,000 units. Percentage of completion of completed and transferred unit is 100% with respect to transferred in cost. Percentage of completion of transferred unit in ending inventory is 100% with respect to transferred in cost. Percentage of completion of materials cost in ending inventory is 90%. Percentage of completion of conversion costs in ending inventory is 40%. Calculation for (a) Total units = Beginning units + Transferred units = 25,000 + 229,000 = 254,000 (1) Total units for (a) is 254,000 . Calculation for (b) Units = Units in (a) - Ending work in process inventory = 254,000(1) - 30,000 = 224,000 (2) Total units for (b) is 224,000 . Calculation for (c) Units = Units in(1) = 254,000 (3) Units for (c) is 254,000 . Computation of equivalent unit for transferred in costs in completed and transferred units (d): Equivalent units = Number of units × percentage of completion = 224,000(2) × 100% = 224,000 (4) Units for (d) is 224,000 . Computation of equivalent unit for transferred in costs in ending inventory (e): Equivalent units = Number of units × percentage of completion = 30,000 × 100% = 30,000 (5) Units for (e) is 30,000 . Computation of unit for (f): Total units = Units in completed and transferred units + Units in ending inventory = 224,000(4) + 30,000(5) = 254,000 (6) Total units for (f) is 254,000 . Computation of equivalent unit for direct materials in completed and transferred units (g): Equivalent units = Number of units × percentage of completion = 224,000 × 100% = 224,000 (7) Total units for (g) is 224,000

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Chapter 5, Problem 5.39BE

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To compute: Output in terms of equivalent units to arrive at the missing figures.

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Chapter 5 Solutions

Managerial Accounting (5th Edition)

Ch. 5 - (Learning Objective 1) Which of the following is...Ch. 5 - (Learning Objective 2) Conversion costs consist of...Ch. 5 - (Learning Objective 2) Which of the following is...Ch. 5 - (Learning Objective 3) Which of the following is...Ch. 5 - Prob. 5QC Ch. 5 - (Learning Objective 4) The journal entry needed to...Ch. 5 - (Learning Objective 4) A company has two...Ch. 5 - Prob. 8QC Ch. 5 - Prob. 9QC Ch. 5 - Prob. 10QC

Ch. 5 - Compare job costing and process costing (Learning...Ch. 5 - Prob. 5.2SE Ch. 5 - Prob. 5.3SE Ch. 5 - Determine the physical flow of units (process...Ch. 5 - Compute equivalent units (process costing Step 2)...Ch. 5 - Compute equivalent units (process costing Step 2)...Ch. 5 - Summarize total costs to account for (process...Ch. 5 - Prob. 5.8SE Ch. 5 - Prob. 5.9SE Ch. 5 - Prob. 5.10SE Ch. 5 - Prob. 5.11SE Ch. 5 - Prob. 5.12SE Ch. 5 - Prob. 5.13SE Ch. 5 - Prob. 5.14SE Ch. 5 - Prob. 5.15SE Ch. 5 - Prob. 5.16SE Ch. 5 - Continuation of S5-16: Record journal entry and...Ch. 5 - Compute equivalent units in second department...Ch. 5 - Prob. 5.19SE Ch. 5 - Prob. 5.20SE Ch. 5 - Prob. 5.21SE Ch. 5 - Prob. 5.22SE Ch. 5 - Analyze flow of costs through inventory T-accounts...Ch. 5 - Summarize physical units and compute equivalent...Ch. 5 - Prob. 5.25AE Ch. 5 - Prob. 5.26AE Ch. 5 - Continuation of E5-26A: Journal entries (Learning...Ch. 5 - Complete the production cost report in first...Ch. 5 - Prob. 5.29AE Ch. 5 - Analyze costs and gross profit in a process...Ch. 5 - Prob. 5.31AE Ch. 5 - Compute equivalent units and assign costs...Ch. 5 - Complete five-step procedure in first department...Ch. 5 - Sustainability and process costing (Learning...Ch. 5 - Complete five-step procedure and journalize result...Ch. 5 - Complete five-step procedure in second department...Ch. 5 - Exercises Group B E5-37B Analyze flow of costs...Ch. 5 - Summarize physical units and compute equivalent...Ch. 5 - Prob. 5.39BE Ch. 5 - Complete five-step procedure in first department...Ch. 5 - Prob. 5.41BE Ch. 5 - Prob. 5.42BE Ch. 5 - Prob. 5.43BE Ch. 5 - Prob. 5.44BE Ch. 5 - Record journal entries (Learning Objective 4)...Ch. 5 - Compute equivalent units and assign costs...Ch. 5 - Prob. 5.47BE Ch. 5 - Sustainability and process costing (Learning...Ch. 5 - Complete five-step procedure and journalize result...Ch. 5 - Complete five-step procedure in second department...Ch. 5 - Process costing in a single processing department...Ch. 5 - Process costing in a first department (Learning...Ch. 5 - Prob. 5.53AP Ch. 5 - Prepare a production cost report and journal...Ch. 5 - Prob. 5.55AP Ch. 5 - Process costing in a single processing department...Ch. 5 - Process costing in a first department (Learning...Ch. 5 - Prob. 5.58BP Ch. 5 - Prepare a production cost report and journal...Ch. 5 - Prob. 5.60BP Ch. 5 - Prob. 5.61SC Ch. 5 - Discussion Questions 1. What characteristics of...Ch. 5 - Prob. 5.63ACT Ch. 5 - Prob. 5.64ACT Ch. 5 - Process costing and hybrid costing issues...

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Output in terms of equivalent units to arrive at the missing figures.

Solution Summary: The author calculates equivalent units by multiplying total units under consideration with degree of completion according with the material cost and conversion cost.

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To compute: Output in terms of equivalent units to arrive at the missing figures.

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Chapter 5 Solutions