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Complete five-step procedure in second department Alpha Semiconductors experienced the following activity in its Photolithography Department during December. Materials are added at the beginning of the photolithography process. Requirements Summarize flow of physical units and compute total equivalent units for three cost categories: transferred-in, direct materials, and conversion costs. Summarize total costs to account for and compute the cost per equivalent unit for each cost category. Assign total costs to (a) units completed and transferred to Finished Goods Inventory and units in December 31 Work in Process Inventory.
Expert Answer
Solution:
| 1) | |||||
| BWIP | 6,000 | ||||
| Started | 29,000 | ||||
| Units to account for | 35,000 | ||||
| TIC | DM | CC | |||
| Completed | 28,000 | 28,000 | 28,000 | 28,000 | |
| EWIP 70% | 7,000 | 7000 | 7000 | 4900 | |
| Units to account for | 35,000 | 35,000 | 35,000 | 32,900 | |
| 2) | |||||
| Unit costs | DM | CC | CC | Total | |
| BWIP | $21,600 | $20,350 | $27,690 | $69,640 | |
| Incurred | $97,400 | 63,650 | 90,750 | $251,800 | |
| $119,000 | $84,000 | $118,440 | $321,440 | ||
| $3.40 | $2.40 | $3.60 | $9.40 | ||
| 3) Valuation | |||||
| Completed | $95,200.00 | $67,200.00 | $100,800.00 | $263,200.00 | |
| EWIP | $23,800.00 | $16,800.00 | $17,640.00 | $58,240.00 | |
| Total | $119,000 | $84,000 | $118,440 | $321,440 |
