Arrow Company processes a food seasoning powder through its Compounding and Packaging departments. In the Compounding Department,

Question:

Arrow Company processes a food seasoning powder through its Compounding and Packaging departments. In the Compounding Department, direct materials are added at the beginning of the process, and direct labor and manufacturing overhead are incurred evenly throughout the process. Arrow uses the weighted average method. Costs in the Compounding Department can be summarized as follows:

image text in transcribed

At August 31, 2016, 3,000 units were in process, 30% complete with respect to conversion costs.
Required
Calculate the following for the Compounding Department:

a. Equivalent units for materials and conversion costs during August.

b. Costs per equivalent unit for materials and conversion costs.

c. Total cost of units transferred to the Packaging Department.

d. Inventory cost at August 31, 2016.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting For Undergraduates

ISBN: 9781618531124

1st Edition

Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.

Question Posted: