Question
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the companys production schedule for May:
|
|
| Percent Completed | |||
|
| Tons of Pulp | Materials | Conversion | ||
| Work-in-Process Inventory, May 1 | 5,000 | 100 | % | 50 | % |
| Started during May | 12,000 |
|
|
|
|
| Units to account for | 17,000 |
|
|
|
|
|
|
|
|
|
|
|
| Units from beginning Work-in-Process, which were completed and transferred out during May | 5,000 |
|
|
|
|
| Started and completed during May | 7,200 |
|
|
|
|
| Work-in-Process Inventory, May 31 | 4,800 | 100 | % | 50 | % |
| Total units accounted for | 17,000 |
|
|
|
|
The following cost data are available:
|
|
|
|
|
| Work-in-Process Inventory, May 1 |
|
|
|
| Direct materials | $ | 73,690 |
|
| Conversion |
| 23,494 |
|
| Costs incurred during May |
|
|
|
| Direct materials |
| 188,280 |
|
| Conversion |
| 315,810 |
|
Required:
1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method.
2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the companys production schedule for May:
|
|
| Percent Completed | |||
|
| Tons of Pulp | Materials | Conversion | ||
| Work-in-Process Inventory, May 1 | 5,000 | 100 | % | 50 | % |
| Started during May | 12,000 |
|
|
|
|
| Units to account for | 17,000 |
|
|
|
|
|
|
|
|
|
|
|
| Units from beginning Work-in-Process, which were completed and transferred out during May | 5,000 |
|
|
|
|
| Started and completed during May | 7,200 |
|
|
|
|
| Work-in-Process Inventory, May 31 | 4,800 | 100 | % | 50 | % |
| Total units accounted for | 17,000 |
|
|
|
|
The following cost data are available:
|
|
|
|
|
| Work-in-Process Inventory, May 1 |
|
|
|
| Direct materials | $ | 73,690 |
|
| Conversion |
| 23,494 |
|
| Costs incurred during May |
|
|
|
| Direct materials |
| 188,280 |
|
| Conversion |
| 315,810 |
|
Required:
1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method.
2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.
A. Direct Materials conversions=
A. Conversion =
In equivalent Units and Cost per equivalent units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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