Question
Rye Inc. is a small food manufacturing company that has three departments (Mixing, Baking, and Packaging departments) used to produce their most popular product -
Rye Inc. is a small food manufacturing company that has three departments (Mixing, Baking, and Packaging departments) used to produce their most popular product - Fishy Crackers. Data for the Mixing Department for the month of November 2020 follow: Work-in-process, November 1 -1,200 units 90% complete for direct materials; 40% completed for conversion costs Actual costs of direct materials, $15,000 Actual costs of conversion, $5,000 Units started during November, Units completed during November 5,000 5,200 Work-in-process, November 30 1,000 units 100% complete for direct materials; 45% completed for conversion costs Actual costs of direct materials added during November, $25,000 Actual conversion costs added during November, $10,000 SHOW ALL CALCULATIONS. ROUND TO THE NEAREST $0.01. DON'T FORGET UNITS Required: A. If Rye Inc. uses the weighted-average (WA) method to accounting for inventories, calculate the cost per equivalent unit of work done to date for Direct Materials. B. If Rye Inc. uses the weighted-average (WA) method to accounting for inventories, calculate the cost per equivalent unit of work done to date for Conversion Costs. C. Explain in words why even though the equivalent units for direct materials and conversion costs will be different under the WA method and the FIFO method, the total dollars accounted for will be the same under the two methods
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started