Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alpha Company manufactures video players. The costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly

Alpha Company manufactures video players. The costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming Department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Ronnie Company uses weighted-average costing method process costing. The following information is available for the month of November 2022 for the Assembly department. 300 units Work-in-process (WIP), beginning inventory Conversion costs (30% complete) Units started during November Work-in-process (WIP), ending inventory: Conversion costs (50% complete) 800 units Conversion costs Direct materials costs added during November Conversion costs added during November 100 units The cost details for the month of November are as follows: Work-in-process (WIP), beginning inventory: Direct materials $345,000 $360,000 $700,000 $1,120,000 Based on the information provided, compute the following for Alpha Company, showing your workings and answers in the space below. a. Compute the equivalent units for direct materials and conversion costs for the month of November. (4 marks) b. Compute the direct materials cost and conversion costs per equivalent unit for the month of November. (4 marks) c. Compute the total cost of goods completed and transferred out during the month of November. (4 marks) d. Compute the total amount of direct materials and conversion costs assigned to the ending work-in-process inventory for the month of November. (4 marks) e. Discuss the key differences in computing the cost of products using the weighted-average and the first-in-first-out (FIFO) methods of process costing (students are to explain the computational differences in detail, no numbers or workings required). (4 marks)

Step by Step Solution

3.44 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

a Compute the equivalent units for direct materials and conversion costs for the month of November Equivalent units for direct materials Workinprocess WIP beginning inventory 300 units Units started d... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Charles E. Davis, Elizabeth Davis

2nd edition

1118548639, 9781118800713, 1118338448, 9781118548639, 1118800710, 978-1118338445

More Books

Students also viewed these Accounting questions

Question

Case : Karl and June Monroe

Answered: 1 week ago