Question
Automobile company produces tires. The following information is available for Company: Beginning work in process inventory: 2,000 tires, 100% complete for direct materials, 60% complete
Automobile company produces tires. The following information is available for Company: Beginning work in process inventory: 2,000 tires, 100% complete for direct materials, 60% complete for conversion costs, cost of direct materials added = $12,000, cost of direct labor and manufacturing overhead allocated = $10,000 Current period activity: 12,600 tires completed, cost of direct materials added = $300,950, cost of direct labor and manufacturing overhead allocated = $232,980 Ending work in process inventory: 4,500 units, 100% complete for direct materials, 40% complete for conversion costs 1) What are the equivalent units for conversion costs under weighted-average? 2) What is the cost for conversion per equivalent unit computed under weighted-average? 3) What is the total cost of units completed and transferred out? 4) What is the total cost of units in ending work in process inventory?
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