Lathrop Inc. mass produces filters for drinking water. The following cost information is available for October: On
Question:
Lathrop Inc. mass produces filters for drinking water. The following cost information is available for October:
On October 1, the company had 1,200 units in process, which were 80 percent complete as to materials and 20 percent complete as to conversion. Lathrop started 12,000 units into process during October and had 800 units still in process on October 31. The ending WIP units were 40 percent complete as to materials and 30 percent complete as to conversion.
a. Compute the unit costs for October for direct material and for conversion under the weighted average method.
b. Determine the cost transferred out for October using the weighted average method. Round your final answers to the nearest whole dollar.
c. Determine the cost of October 31 ending inventory using the weighted average method. Round your final answers to the nearest whole dollar.
Step by Step Answer:
Cost Accounting Foundations And Evolutions
ISBN: 9781618533531
10th Edition
Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn