Question 3

Question 3: 8 marks Riders Ltd has one production department and uses a weighted-average process-costing system. All materials are introduced at the start of the process. Conversion costs are incurred evenly throughout production. The company had beginning work-inprocess inventories on June 1 of 82,000 units and ending work-in-process units of 90,000 units on June 30. The ending work-in-process units were 60% complete. During June, Riders completed 120,000 units. Costs in the beginning work-in-process inventory are: materials, $60,000; conversion, $110,000. During .Tune, Riders charged production with $320,000 of materials and $730,000 of conversion costs. Required: (Round cost per equivalent unit to four decimal places) Show all workings for the below calculations. a. Calculate the number of units that the company started during June. (1.5 Marks) b. Calculate the number of equivalent units with respect to direct material and conversion cost. (2 Mark) c. Calculate the cost per equivalent unit for direct materials and conversion cost. (2 Mark) :1. Calculate the cost of ending work-in-process inventory. (2.5 Marks)