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Bellisario Company has a department that manufactures wood trusses used in the construction industry. The following information is for the production of these trusses for
Bellisario Company has a department that manufactures wood trusses 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 Direct Materials cost Conversion Units started during February Units completed during February and transferred out Work-in-process inventory, February 29 Direct Materials Conversion Costs incurred during February Direct Materials Conversion 100% complete 20% complete 100% complete 40% complete Required (Part A) Using the weighted-average method, calculate the following: 4,000 trusses $10,480 $15,258 18,000 trusses 17,000 trusses $59,040 $92,092 1. Costs per equivalent unit 2. Cost of goods completed and transferred out 3. Cost remaining in the ending WIP inventory 4. Assume that you are the company's controller. The production department's February unit cost is higher than standard cost. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 40 to 60 percent, to lower the unit costs, what should you do? How much unit cost would be affected by this request? Required (Part B) Using the FIFO method, calculate the following: 1. Costs per equivalent unit 2. Cost of goods completed and transferred out 3. Cost remaining in the ending WIP inventory 4. Assume that you are the company's controller. The production department's February unit cost is higher than standard cost. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 40 to 60 percent, to lower the unit costs, what should you do? How much unit cost would be affected by this request?
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