Question
During the month of March, Buildem Inc. produces a single product, Krumble, en mass in a continuous production process. The company spent $260,000 in direct
During the month of March, Buildem Inc. produces a single product, Krumble, en mass in a continuous production process. The company spent $260,000 in direct materials in the month and recorded conversion costs of $625,000 to produce 5,000 units, completing the production to 70%. The company started the month with 2,500 units in beginning WIP inventory. Using the weighted-average process-costing method, determine the following:
1. How many equivalent units were completed and transferred in March? 2. How many EU remain in ending WIP inventory? 3. What is the cost per EU for direct material? 4. What is the cost per EU for conversion costs? 5. What is the value of the units completed and transferred? 6. What is the value of ending WIP?
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