Question
The following details refer to Department A in a company that utilizes process costing for the month of May: Percent Complete Units Materials Conversion Beginning
The following details refer to Department A in a company that utilizes process costing for the month of May:
| Percent Complete | |||
| Units | Materials | Conversion | |
| Beginning WIP | 200 | 40% | 30% |
| Units started during May | ? | ||
| Units Completed during May and transferred to the next department | 5,800 | 100% | 100% |
| Ending work in process inventory | 600 | 40% | 60% |
| Materials | Conversion | |
| Cost of beginning WIP | $10,000 | $15,000 |
| Costs added during May | $290,000 | $387,000 |
| Total cost | $300,000 | $402,000 |
The company uses the weighted-average method.
Clearly specify what your answers are for each of the following
a) Calculate the number of physical units started in May.
b) Calculate the equivalent units for (i) Materials and (ii) Conversion
c) The cost per equivalent unit for (i) Materials and (ii) Conversion (Instructions: Round to the nearest 4th decimal place and use that rounded number in any further calculations - i.e., $XX.XXXX - as an example, if you calculate $16.41937 = $16.4194)
d) The cost of total ending WIP costs (Instructions: Round to the nearest dollar when performing the related calculation)
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
