Module Four #$9$

The machining department of Novak Mfg$.$ had a busy year; management evaluated the stage of completion of ending WIP inventory and recorded the following in Step $1$ of its processing costing.

STEP $1$: verify physical units in the period & identify degree of completion

Degree of Completion

Physical Units DM Conversion costs

Units in beginning WIP Inventory $2900100\%70\%$

Units started this period $260200$

Total Units to Accounts $263100$

$========$

Units completed & removed from WIP

Inventory this period $253500$

Units in ending WIP Inventory $96000\%$

Total Units Accounted for $263100$

Novak adds its conversion costs evenly throughout the machining process.

a$).$ Determine the equivalent units of production for both DM and conversion costs this year for the Novak machining department under the FIFO method.

DM Conversion Costs

Total equivalent units of work done this period $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

b$).$ According to the completion percentages in part $($a$),$ does Novak add DM costs in the machining department closer to the beginning, the middle, or the end of the process?

$(\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_)$ beginning, middle, end of process.

d$).$ Determine the equivalent units of production for both DM and conversion costs this year for the Novak machining department under the weighted average method.

DM Conversion Costs

Total equivalent units of work done this period $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$