Question
Solex Company produces a high-quality insulation material that passes through two production processes. Data for June for the first process follow: Units Completion with Respect
Solex Company produces a high-quality insulation material that passes through two production processes. Data for June for the first process follow: |
Units | Completion with Respect to Materials | Completion with Respect to Conversion | |||||
Work in process inventory, June 1 | 73,000 | 85 | % | 50 | % | ||
Work in process inventory, June 30 | 53,000 | 60 | % | 30 | % | ||
Materials cost in work in process inventory, June 1 | $ | 57,900 | |||||
Conversion cost in work in process inventory, June 1 | $ | 17,000 | |||||
Units started into production | 251,200 | ||||||
Units transferred to the next process | 271,200 | ||||||
Materials cost added during June | $ | 393,570 | |||||
Conversion cost added during June | $ | 244,261 | |||||
Required: |
1. | Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for June for the first process. |
Materials | Conversion | |
Equivalent units of production | ||
2. | Compute the costs per equivalent unit for June for the first process. (Round your answers to 2 decimal places.) |
Materials | Conversion | |
Cost per equivalent unit | $ | $ |
3. | Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Round your intermediate calculations to 2 decimal places. Round your final answer to whole dollar amount.) |
Total | |
Cost of ending work in process inventory | $ |
Cost of units transferred to the next process | $ |
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