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Bookworm, Inc, has two departments: printing and binding. Books that have undergone the printing process are immediately transferred to the binding department. Direct materials are
Bookworm, Inc, has two departments: printing and binding. Books that have undergone the printing process are immediately transferred to the binding department. Direct materials are added when the binding process is 80% complete. Conversion costs are added evenly during binding operations. When those operations are done, the books are immediately transferred to Finished Goods. The company uses the weighted-average method in its process costing system. Data for April for the Binding Department follow: Percent Completed Units Transferred-in Materials Conversion Work in process inventory, April 1..... 1,050 100% 0% 50% Transferred-in during April... Work in process inventory, April 30... 2,400 750 100% 0% 70% Dollar amount (S) Transferred-in Materials Conversion Work in process inventory, April 1..... Cost added during April.. $32,550 $129,600 $0 $13,650 $23,490 $70,200 Required: (a) Determine the equivalent units for April for the Transferred-in, Materials, and Conversion costs. (4 points) (b) Compute the cost per equivalent unit for Transferred-in, Materials, and Conversion Costs. (3 points) (c) Compute the total costs (in dollar amount) of the ending inventory of work-in-process on April 30 for the Binding Department. (3 points)
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