Question
The assembly division of Marzollo Time Pieces, Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2017:
The assembly division of Marzollo Time Pieces, Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2017:
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| Physical Units | Direct | Conversion |
|
| (Watches) | Materials | Costs |
| Beginning work in process (May 1)a | 100 | $738,600 | $64,500 |
| Started in May 2017 | 525 | ||
| Completed during May 2017 | 480 | ||
| Ending work in process (May 31)b | 145 | ||
| Total costs added during May 2017 | $3,195,000 | $1,415,000 |
a. Degree of completion: direct materials, 80%; conversion costs, 35%.
b. Degree of completion: direct materials, 80%; conversion costs, 40%.
Requirement
Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.
Enter the physical units first, then calculate the equivalent units.
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|
|
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| Physical |
| Flow of Production | Units |
| Work in process beginning |
|
| Started during current period |
|
| To account for |
|
| Completed and transferred out during current period |
|
| Work in process, ending |
|
| Accounted for |
|
| Equivalent units of work done to date |
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