Question
Barney Corporation adds materials at the beginning of the process in department AX. The conversion costs were 75% complete as to the 20,000 units in
Barney Corporation adds materials at the beginning of the process in department AX. The conversion costs were 75% complete as to the 20,000 units in WIP on April 30 and 50% complete as to the 15,000 units in WIP on May 31. During May 55,000 units were completed and transferred to the next department. An analysis of the costs relating to WIP at May 1 and to production activity for May is as follows
Direct materials Conversion
WIP,MAY 1 16,600 14,800
COSTS ADDED IN MAY 75,700 33,300
Required
A) Prepare Department AX'S COST OF THE PRODUTION REPORT FOR MAY ASSUMING FIFO WAS USED. UNDER FIFO, WHAT IS THE COST PER EQUIVALENT UNIT WITH RESPECT TO DIRECT MATERIALS? WHAT IS THE COST PER EQUIVALENT UNIT WITH RESPECTTO CONVERSION COSTS?
B) REPEAT PART A) BUT USING THE WEIGHTED AVERAGE INVENTORY SYSTEM INSTEAD.
Inputs outputs
Beginning add current Equals total subtract completed +ending WIP total
cutting inventory Month production transfer out inventory outputs
Units Calculations
Direct materials Whole units
% equivalent
Direct materials equivalent units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started