(a) Compute the physical units of production.

PHYSICAL UNITS OF PRODUCTION

Units to be accounted for: Physical Units
Units in beginning inventory 0
Units started into production 50 000
Total Units to be accounted for 50 000
Units accounted for
Units completed and transferred out (50 000- 40 000
10 000)
Units in ending process 10 000
Total Units accounted for 50 000

b) Determine the equivalent units of production for materials and conversion

costs

EQUIVALENT UNITS OF MATERIAL AND CONVERSION COST

Particulars Physical Materials Conversion Cost
Units
Units completed and transferred out (50 000-10 000) 40 000 40 000 40 000
(40 000*100%) (40 000*100%)
Units in ending work process 10 000 10 000 4 000
(10 000*100%) (10 000*40%)

Equivalent Units 50 000 50 000 44 000

Therefore, the answer is $50 000 $44 000

c) Compute the unit costs of production.

STATEMENT FOR CALCULATION OF UNIT COST
Materials Conversion Cost Unit Cost
Cost incurred during the period 555 000 231 000
Total cost to be accounted for 555 000 231 000
Equivalent Units 50 000 44 000
Equivalent cost per unit 11.1 5.25 16.35
The unit cost of production is $16.35

(d) Determine the costs to be assigned to the units transferred out and in process.
COSTS ACCOUNTED FOR:
Transferred out (40 000*16.35) 654 000
Cost of ending work in process (10 000*11.1) + 132 000
(4000*5.25)
Total costs accounted for 786 000