Question
5#1 produces a lip balm used for cold-weather sports. The balm is manufactured in a single processing department. No lip balm was in process on
5#1
produces a lip balm used for cold-weather sports. The balm is manufactured in a single processing department. No lip balm was in process on
May
31,
and
Ruby
started production on
20,300
lip balm tubes during
June.
Direct materials are added at the beginning of the process, but conversion costs are incurred evenly throughout the process. Completed production for
June
totaled
15,800
units. The
June
30
work in process was
30%
of the way through the production process. Direct materials costing
$5,278
were placed in production during
June,
and direct labor of
$3,370
and manufacturing overhead of
$3,490
were assigned to the process. Read the requirements
LOADING...
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Requirement 1. Fill in the time line for
Ruby Lips.
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Conversion costs added evenly throughout the process |
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Start |
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| 30% | Complete | 100% | Complete |
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Units transferred out |
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| 100% complete | ||||
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15,800 units completed and transferred out |
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4,500 units incomplete |
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Requirement 2. Use the time line to help you compute the total equivalent units and the cost per equivalent unit for
June.
Ruby Lips | |||
Lip Balm Department | |||
Equivalent Unit Computation | |||
Month Ended June 30 | |||
| Flow of | Equivalent Units | |
| Physical | Direct | Conversion |
Flow of Production | Units | Materials | Costs |
Units accounted for: |
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Total equivalent units |
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Compute the cost per equivalent unit. (For entries with a $0 balance, make sure to enter "0" in the appropriate cell(s). Enter the cost per equivalent unit to two decimal places.)
Ruby Lips | ||
Lip Balm Department | ||
Cost per Equivalent Unit | ||
Month Ended June 30 | ||
| Direct | Conversion |
| Materials | Costs |
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Cost per equivalent unit |
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Requirement 3. Assign total costs to (a) units completed and transferred to Finished Goods and (b) units still in process at
June
30.
(Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step.)
Lip Balm Department | ||||
Month Ended June 30 | ||||
Assigning Costs | ||||
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| Materials | Costs | Total |
a. | Completed and transferred out: | |||
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b. | Ending work in process: |
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| Total costs accounted for |
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Requirement 4. Prepare a T-account for Work in Process Inventory to show activity during
June,
including the
June
30
balance. (For entries with a $0 balance, make sure to enter "0" in the appropriate cell.)
Work in Process Inventory | |||
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