Question
Process Excellence (PE), Inc. has two production departments: Mixing and Packaging. Mixing Department Packaging Department Warehouse At Mixing Department, all materials are added at the
Process Excellence (PE), Inc. has two production departments: Mixing and Packaging.
Mixing Department |
| Packaging Department |
| Warehouse |
|
|
At Mixing Department, all materials are added at the beginning of the process. Labor and overhead (conversion resources) are added evenly throughout the process. The following information pertains to the Mixing Department for the month of July.
| Physical units | Materials | Conversion |
Beginning work-in-process inventory | 1,000 units (40% complete) | $8,500 | $7,552 |
Units started in July | 5,000 units |
|
|
Ending work-in-process inventory | 400 units (30% complete) |
|
|
Costs added in July |
| 60,500 | 130,872 |
Required:
- Determine the number of units completed and transferred to the Packaging Department in July.
- Compute the equivalent units using the weighted-average method.
- Compute the costs per equivalent unit using the weighted-average method.
- Compute the costs of goods transferred out and the ending work-in-process inventory using the weighted-average method.
(Continued from Problem 1)
The information that pertains to the Mixing Department for the month of July is reproduced here. All materials are added at the beginning of the process. Labor and overhead (conversion resources) are added evenly throughout the process.
| Physical Units | Materials | Conversion |
Beginning work-in-process inventory | 1,000 units (40% complete) | $8,500 | $7,552 |
Units started in July | 5,000 units |
|
|
Ending work-in-process inventory | 400 units (30% complete) |
|
|
Costs added in July |
| 60,500 | 130,872 |
Required:
- Determine the number of units completed and transferred to the Packaging Department in July.
- Compute the equivalent units using the FIFO method.
- Compute the cost per equivalent unit using the FIFO method.
- Compute the costs of goods transferred out and the ending work-in-process inventory using the FIFO method.
(Continued from Problem 1)
Process Excellence (PE), Inc., has two production departments: Mixing and Packaging.
Mixing Department |
| Packaging Department |
| Warehouse |
|
|
At the Packaging Department, all materials are added at the beginning of the process. Labor and overhead (conversion resources) are added evenly throughout the process. The following information pertains to the Packaging Department for the month of July.
| Physical Units | Transferred-In | Materials | Conversion |
Beginning work-in-process inventory | 900 units (60% complete) | $10,680 | $3,888 | $5,130 |
Units completed | 6,000 units |
|
|
|
Ending work-in-process inventory | 500 units (50% complete) |
|
|
|
Costs added in July |
| 199,920a | 42,912 | 54,245 |
|
|
|
|
|
a This is the cost of goods completed and transferred out of the Mixing Department in July using the weighted-average method.
Required:
- Determine the number of units started in July.
- Compute the equivalent units using the weighted-average method.
- Compute the cost per equivalent unit using the weighted-average method.
- Compute the costs of goods transferred out and the ending work-in-process inventory using the weighted-average method.
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