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During April, the production department of a process manufacturing system comple

ID: 2339116 • Letter: D

Question

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 76,000 were in process in the production department at the beginning of April and 304,000 were started and completed in April. Aprifs beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 98,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion. The production department had S1,300,088 of direct materials and S913,154 of conversion cost charged to it during April. Also, its beginning inventory of $247,066 consists of $182,472 of direct materials cost and $64,594 of conversion costs 182. Using the weighted-average method, compute the direct materials cost and the conversion cost per equivalent unit and assign Aprils costs to the department's output. (Round "Cost per EUP" to 2 decimal places.) Equivalent Units of Production (EUP)-Weighted Average Method Units % Materials EUP-Materials | % Conversion EUP-Conversion Equivalent units of production Cost per Equivalent Unit of Production Materials Conversion Total costs Costs Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Total Costs to Account for: EUP EUP Total costs to account for Total costs accounted for Difference due to rounding cost/unit Cost Assignment and Reconciliation Cost of units transferred out EUP Cost per EUP Total cost Direct materials Total costs transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials Total cost of ending work in process Total costs accounted for

Explanation / Answer

Answer

EUP - Weighted Average Method

Units

% Material

EUP Materials

% Conversion

EUP - Conversion

Units TRANSFERRED

380,000

100%

380,000

100%

380,000

Units of ENDING WIP

98,000

85%

83,300

35%

34,300

Equivalent Units of Production

463,300

414,300

COST per EUP

Material

Conversion

Cost of Beginning WIP

$      182,472.00

$          64,594.00

Cost incurred during the period

$ 1,300,088.00

$        913,154.00

Total Costs

Costs

$ 1,482,560.00

Costs

$        977,748.00

Equivalent units of production

EUP

463,300

EUP

414,300

Cost per EUP

$                   3.20

$                     2.36

Total Cost to account for:

Cost of beginning WIP

$       247,066.00

Costs incurred this period

$    2,213,242.00

Total Cost to account for

$    2,460,308.00

Total costs accounted for

$    2,460,308.00

Difference due to rounding cost/unit

$                         -  

TOTAL COST ACCOUNTED FOR

Cost of Units Transferred Out

EUP

Cost per EUP

Total Cost

- Direct Materials

380,000

$       3.20

$ 1,216,000.00

- Conversion

380,000

$       2.36

$      896,800.00

Total Cost transferred Out

$        2,112,800.00

Costs of Ending WIP:

EUP

Cost per EUP

Total Cost

- Direct Materials

83,300

$       3.20

$      266,560.00

- Conversion

34,300

$       2.36

$        80,948.00

Total cost of ending WIP

$            347,508.00

Total costs accounted for

$    2,460,308.00

---Working

Units Reconciliation

Units to account for:

Beginning WIP

                   76,000

Units started this period

                 402,000

Total Units to account for

                 478,000

Total Units accounted for:

Completed & Transferred out

                 380,000

Ending WIP

                   98,000

Total Units accounted for

                 478,000

EUP - Weighted Average Method

Units

% Material

EUP Materials

% Conversion

EUP - Conversion

Units TRANSFERRED

380,000

100%

380,000

100%

380,000

Units of ENDING WIP

98,000

85%

83,300

35%

34,300

Equivalent Units of Production

463,300

414,300

COST per EUP

Material

Conversion

Cost of Beginning WIP

$      182,472.00

$          64,594.00

Cost incurred during the period

$ 1,300,088.00

$        913,154.00

Total Costs

Costs

$ 1,482,560.00

Costs

$        977,748.00

Equivalent units of production

EUP

463,300

EUP

414,300

Cost per EUP

$                   3.20

$                     2.36

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