Question
Aldo manufactures substitute cosmetics goes through two processing departments prior to completion. The following data pertains to the operations of the second department for May.
Aldo manufactures substitute cosmetics goes through two processing departments prior to completion.
The following data pertains to the operations of the second department for May.
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 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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Payroll Accounting 20
Authors: Bernard J. Bieg, Judith A. Toland
26th Edition
1337268798, 9781337268790
