Question
Weighted-Average Method Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for
Weighted-Average Method Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February: Work-in-Process Inventory, February 1 4,000 trusses Direct materials: 100% complete $10,480 Conversion: 20% complete $15,258 Units started during February 18,000 trusses Units completed during February and transferred out 17,000 trusses Work-in-Process Inventory, February 29 Direct materials: 100% complete Conversion cost: 40% complete Costs incurred during February Direct materials $ 59,040 Conversion $ 92,092 Required Using the weighted-average method,
calculate the following:
1. Costs per equivalent unit.
Cost of goods completed and transferred out.
Costs remaining in the Work-in-Process Inventory account.
2. Assume that you are the companys controller. The production departments February equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 40 to 60% to lower the unit costs, what should you do? How much would unit cost be affected by this request?
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