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Percentage of completion

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Percentage of Completion
Mirissa Foust
ACC/543
February 1, 2021
Deborah Adkins

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Percentage of Completion
Beginning Inventory = 5,500 units
Product Started = 94,500 units
Units Transferred = 90,000
Total Cost = $902,400
Compute the equivalent cost per unit, assuming the ending inventory is considered to be 40
percent complete.
5,500 + 94,500 = 100,000 Work in Progress
100,000 - 90,000 = 10,000 Work in Progress
90,000 × 100% = 90,000
10,000 × 40% = 4,000 whole units
90,000 4,000 = 86,000
$902,400 ÷ 86,000 = $10.49 cost per unit
90,000 × $10.49 = $944,100
4,000 × $10.49 = $41,960
$944,100 + $41,960 = $986,060
Compute the equivalent cost per unit, assuming the ending inventory is considered to be 60
percent complete.
5,500 + 94,500 = 100,000 Work in Progress
100,000 - 90,000 = 10,000 Work in Progress

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1 Percentage of Completion Mirissa Foust ACC/543 February 1, 2021 Deborah Adkins 2 Percentage of Completion Beginning Inventory = 5,500 units Product Started = 94,500 units Units Transferred = 90,000 Total Cost = $902,400 Compute the equivalent cost per unit, assuming the ending inventory is considered to be 40 percent complete. 5,500 + 94,500 = 100,000 Work in Progress 100,000 - 90,000 = 10,000 Work in Progress 90,000 × 100% = 90,000 10,000 × 40% = 4,000 whole units 90,000 – 4,000 = 86,000 $902,400 ÷ 86,000 = $10.49 cost per unit 90,000 × $10.49 = $944,100 4,000 × $10.49 = $41,960 $944,100 + $41,960 = $986,060 Compute the equivalent cost per unit, assuming the ending inventory is considered to be 60 percent complete. 5,500 + 94,500 = 100,000 Work in Progress 100,000 - 90,000 = 10,000 Work in Progress 3 90,000 × 100% = 90,000 10,000 × 60% = 6,000 whole units 90,000 + 6,000 = 96,000 $902,400 ÷ 96,000 = $9.40 cost per unit 90,000 × $9.40 = $846,000 4,000 × $9.40 = $56,400 $846,000 + $56,400 = $902,400 Write a 350-word summary of your calculations and findings. Comment on Mr. Sawyer’s motives for establishing the percentage of completion at 60 percent rather t ...
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