Question
part a The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Duerr
part a The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Duerr Company follows:
Beginning raw materials inventory | $ | 16,000 | |
Ending raw materials inventory | 19,000 | ||
Raw material purchases | 93,000 | ||
Beginning work in process inventory | 28,000 | ||
Ending work in process inventory | 38,000 | ||
Direct labor | 118,000 | ||
Total factory overhead | 93,000 | ||
Beginning finished goods inventory | 68,000 | ||
Ending finished goods inventory | 48,000 | ||
The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:
part b Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 81,000 units, 80% complete as to materials and 20% complete as to conversion. Units started and completed: 252,000. Units completed and transferred out: 333,000. Ending Inventory: 30,500 units, 30% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $38,200. Costs in beginning Work in Process - Conversion: $80,700. Costs incurred in October - Direct Materials: $710,130. Costs incurred in October - Conversion: $920,300. Calculate the cost per equivalent unit of materials.
part c
Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 95,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 265,000. Units completed and transferred out: 360,000. Ending Inventory: 37,500 units, 30% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $52,200. Costs in beginning Work in Process - Conversion: $94,700. Costs incurred in October - Direct Materials: $802,800. Costs incurred in October - Conversion: $1,091,050. Calculate the cost per equivalent unit of conversion.
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