Question
Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production
Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February:
Work-in-process inventory, February 1 | 3,200 | trusses |
---|---|---|
Direct materials: 100% complete | $ 10,480 | |
Conversion: 40% complete | $ 15,258 | |
Units started during February | 18,000 | trusses |
Units completed during February and transferred out | 17,000 | trusses |
Work-in-process inventory, February 29 | ||
Direct materials: 100% complete | ||
Conversion: 20% complete | ||
Costs incurred during February | ||
Direct materials | $ 59,040 | |
Conversion | $ 92,092 |
Required
Using the weighted-average method, calculate the following:
1-a. Costs per equivalent unit. (Round your answers to 4 decimal places.)
1-b. Cost of goods completed and transferred out. (Round "Cost per EU" to 4 decimal places. Round final answer to nearest whole dollars.)
1-c. Costs remaining in the Work-in-Process Inventory account. (Round "Cost per EU" to 4 decimal places. Do not round other intermediate calculations. Round final answer to nearest whole dollars.)
2. Assume that you are the companys controller. The production departments February equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 20 to 40% to lower the unit costs, how much would unit cost be affected by this request? (Round your answer to 4 decimal places.)
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