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Looking how to do D. A company reports the following unit information for the prior month: Units Direct Materials Percentage Complete Conversion Percentage Complete Units
Looking how to do D. A company reports the following unit information for the prior month: Units Direct Materials Percentage Complete Conversion Percentage Complete Units completed and 250,000 transferred out Ending work in 10,500 60% 25% process inventory The company also reports the following cost information for the prior month: Beginning work in process inventory: Direct materials $ 67,500 Conversion cost $ 78,000 Costs added this period: Direct materials $ 509,175 Conversion cost $ 932,500 Required: Determine the following amounts using the weighted average method of process costing. No particular format is required, showing your work helps with earning partial credit a. Equivalent units for direct materials and conversion b. Cost per equivalent unit for direct materials and conversion. c. Total cost of units transferred out of the department. d. Cost of ending work in process remaining in the department EXTRA CREDIT: Compute gross profit and the gross profit ratio assuming the company sold 235,000 units at a price of $10.00 per unit. Your Answer: A. Direct Materials= 250,000+ (10,500 X.6) =256,300 Conversion Cost= 250,000+ (10,500X.25)=252,625 B. Direct Materials =67,500+509,175 /(256,300)= 2.25 Conversion Cost= 78,000+932,500 /(252,625) = 4 C. Direct Materials = 250,000 X 2.25 = 562,500 Conversion Cost = 250,000 X 4 = 1,000,000 = 1,562,500 D. Direct Material = Conversion Cost
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