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1 Bell Computers, Ltd., located in Liverpool, England, assembles a standardized personal computer from parts it purchases from various suppliers. The production process consists of

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1 Bell Computers, Ltd., located in Liverpool, England, assembles a standardized personal computer from parts it purchases from various suppliers. The production process consists of several steps, starting with assembly of the mother circuit board, which contains the central processing unit. This assembly takes place in the CPU Assembly Department. The company recently hired a new accountant who prepared the following report for the department for May using the weighted-average method: 20 points 8 002042 Units to be accounted for: Work in process, May 1: materials 90% complete, conversion 80% complete Started into production 6.100 32.100 Total units 38.200 75% 34,200 Units accounted for as follows: Transferred to next department Work in process, May 31: materials complete, conversion 50% complete Total units 4.000 38,200 Cost Reconciliation Cost to be accounted for Work in process. May 1 Cost added in the department 20,984 121.238 Total cost to be accounted for 2.222 Total cost accounted for 1 142.222 Help Save & EX 20 pois 00:2000 The company's management would lke some additional information about May's operation in the CPU Assembly Department. The currency in England is the pound, which is denoted by the symbol) Required: 1. How many units were started and completed during May Units started and completed during May 2. What were the equivalent unts for May for materials and conversion costo Materials Conversion Equivalent units of production 3. What were the costs per equivalent unit for May? The following additional care available concerning the department's costs: (Omit the sign in your response) Man Conversion Work in process, May 1 13.069 7015 20.984 Costs added during May 78.659 42.579 121.238 Costeret Conversion CU 4. Calculate the material cost the conversion cost of the ending work in process ih 4. Calculate the material cost and the conversion cost of the ending work in process, (Omit the "C" sign in your response.) Materials Conversion Total Ending work in process inventory Equivalent units of production Cost per equivalent unit Cost of ending work in process Inventory 5. The new manager of the CPU Assembly Department was asked to estimate the incremental cost of processing an additional 1,000 units through the department. He took the unit cost for an equivalent whole unit you computed in (3) above and multiplied this figure by 1000 Will this method yield a valid estimate of incremental cost? Yes No

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