The PVC Company manufactures a high-quality plastic pipe that goes through three

Question

The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.

Information on work in the first department, Cooking, is given below for May:


Production data:
Pounds in process, May 1: materials 100%
complete; conversion 90% complete 89,000
Pounds started into production during May 540,000
Pounds completed and transferred to
the next department ?
Pounds in process, May 31:
materials 80% complete; conversion 20% complete 60,000
Cost data:
Work in process inventory, May 1:
Materials cost $ 124,400
Conversion cost $ 61,700
Cost added during May:
Materials cost $ 646,850
Conversion cost $ 339,190

The company uses the weighted-average method.



Required:
1. Compute the equivalent units of production.

Materials Conversion
Equivalent units of production

2.
Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)

Materials Conversion
Cost per equivalent unit $ $

3.
Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)

Materials Conversion Total
Cost of ending work in process inventory $ $ $
Cost of units completed and transferred out $ $ $




Prepare a cost reconciliation report for the month. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)

Explanation / Answer

PRODUCTION COST complete conversion 90% complete ............................ 70,000 pounds started in production during may ......................350,000 pounds completed and transformed to next department .............? pounds in process , may 31 material 75% complet conversion 25 %complete ......40,000 COST DATA material cost ..........86000 conversion cost .........36000 COST ADDED DURING MAY material cost ..........447000 conversion cost..........198000

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