pr 6-14

The May I work in process inventory consists of $4340 cost. The company uses the weighted average method w Riyad ring May and the cost of they are used to evaluate Determine the equivalent units of production for May Determine the costs per equivalent unit for May. to Blending Determine the cost of the units completed and transferred to ending work in process inventory. have computed What criticism can be made of the unit costs that you have com how well costs have been controlled? roal Entries_Weighted Average PROBLEM 6-10 Equivalent Units: Costing of Inventories: Journal Method 101, LOL, LO3, L04 Tumbin Inc. produces a gasoline additive that, when added to the gas tank of the average automobile, is designed to increase gas mileage by 10%. The company's controller suspects that the year-end dollar balances shown below in the inventory accounts may be incorrect. Units Costs 25.000 30,000 $ 60,000 $113,500 Work in process, December 31 (materials 100% complete: conversion 50% complete).... Finished goods, December 31...... There were no finished goods inventories at the beginning of the year. The company uses the weighted- average method of process costing. There is only one processing department. A review of the company's inventory and cost records shows the following: Costs Units Materials Conversion $22.000 48,000 20,000 600,000 Work in process, beginning of year (materials 100% complete; conversion 80% complete).. Started into production... Costs added during the year ............. Units completed during the year... $750,000 $2,000,000 680,000 Required: 1. Determine the equivalent units and the costs per equivalent unit for materials and conversion for the year. 2 Determine the amount of cost that should be assigned to the ending work in process and finished goods inventories. 3. Prepare the necessary correcting journal entry to adjust the work in process and finished goods inventories to the correct balances as of December 31. CHECKFI Corrected equivalen for mater for conve