Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I couldn't really understand how to calculate conversion costs fQ The Mixing Department otTnday's Foods had 50000 units to account for In October Ofthe 50000

I couldn't really understand how to calculate conversion costs

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
\fQ The Mixing Department otTnday's Foods had 50000 units to account for In October Ofthe 50000 units, 15,000 units were completed and transferred to the next department, and 35,000 units were 45% complete All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the mixing process and the company uses the weightediaverage method. Compute the total equivalent units of production for direct materials and conversion costs for October Today's Fonds Production Cost Report - Mixing Department (Partial) Month Ended October 31 Equivalent Units Physical Direct Conversion UNITS Units Materials Costs Units accounted for: Completed and transferred out Ending workeineprocess Total units accounted for The Mixing Department ot Today's Foods has 50,000 equivalent units of materials and 33750 equivalent units of conversion coss tor October The Mixing Department ot Today's Foods has direct materials costs of $48,000 and conversion costs of $23,625 tor October Compute the cost per equivalent unit of production for direct materials and for conversion costs (Round to the nearest cent) Begin by determining the formula to compute cost per equivalent unit Cost per equivalent unit The direct materials cost per equivalent unit = The conversion cost per equivalent unit : Tne Mixing Department of Foods [or You had 65,000 equivalent units oi materials for October of the 65,000 units, 45,000 units were completed and transterred to the next depaninerit, and 20,000 units were 55% complete Foods for You's costs per equivalent unit of production are $1 20 for dire materials and $0 80 for conversion costs, All of the malenals are added at the beginning ofthe process Conversion costs are added evenly throughout the process and the company uses the weightedraverage method Calculate the cost of the 45,000 units completed and transierred out and the 20,000 units, 55% complete, in the ending Workeianrocess Inventory Foods for You Production Cost Report - Mixing Department (Partial) Month Ended October 31 Di reel. Conversion Total COSTS Materials Costs Costs Costs accounted for Completed and transiened out Ending workeinrprocess Total costs accounted for

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

12th edition

978-1133952428, 1285078578, 1133952429, 978-1285078571

Students also viewed these Accounting questions