Question
Aldo manufactures substitute cosmetics goes through two processing departments prior to completion. The following data pertains to the operations of the first department & the
Aldo manufactures substitute cosmetics goes through two processing departments prior to completion.
The following data pertains to the operations of the first department & the second department for May.
The first department
| Units | Materials | EU | Conversion | EU |
WIP, beginning | 30,000 | 100% | ? | 70% | ? |
Started into production | 170,000 |
|
|
|
|
Completed and transferred out | 160,000 | 100% | ? | 100% | ? |
WIP, ending | 40,000 | 100% | ? | 40% |
|
Started and completed | 130,000 | 100% | ? | 100% | ? |
|
| Material costs |
| Conversion costs |
|
WIP, beginning |
| $24,000 |
| $42,000 |
|
Costs added during the current moth |
| $334,800 |
| $638,000 |
|
The Second department
| Units | Materials | EU | Conversion | EU |
WIP, beginning | 50,000 | 60% | ? | 40% | ? |
Transferred from the 1st department and Started into production | 160,000 |
|
|
|
|
Completed and transferred out | 180,000 | 100% | ? | 100% | ? |
WIP, ending | 30,000 | 30% | ? | 20% | ? |
Started and completed | 130,000 | 100% | ? | 100% | ? |
|
| Material costs |
| Conversion costs |
|
WIP, beginning |
| $60,000 |
| $100,000 |
|
Costs added during the current moth |
| $200,000 |
| $420,000 |
|
Instructions: Using the weighted average method and the FIFO method,
- Compute the equivalent units of production for materials and conversion in the first department for May.
- Compute the cost per equivalent unit for materials and conversion in the first department for May.
- Compute the cost of ending WIP-first department for materials, conversion, and in total for May.
- Compute the cost of units transferred out from the first department for materials, conversion, and in total for May.
- Compute the equivalent units of production for materials and conversion in the second department for May.
- Compute the cost per equivalent unit for materials and conversion in the second department for May.
- Compute the cost of ending WIP-second department for materials, conversion, and in total for May.
- Compute the cost of units transferred out from the second department for materials, conversion, and in total for May.
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