of 30,000 units on June 1. These contained $120,000 of direct manerials and 5272

Question

of 30,000 units on June 1. These contained $120,000 of direct manerials and 5272,000 of cenvenion cont. The Sollowing data relate to activity during June Production Ending work in prooess, 6os complate Cunits) completed (units) 20,000 Direct materials used (3) Conversion cost (3) 695,500 Edge uses a weighted-average process-costing system A manufacturing: in contrast, conversion cost is incurred evenly throghou process-costing system. ll materias are added at the start of production Reawired A. Compute the total equivalent units for direct material and conversion cost B. Compute the cost per equivalent unit of direct material and conversion cost C. Determine the cost of completed production. D. Determine the cost of the June 30th work in process.

Explanation / Answer

Equivalent Units Physical Units Material Conversion Beginning WIP 30000 Units Started 60000 Total units to accounted for 90000 Completed Units 70000 70000 70000 Ending WIP-60% 20000 20000 12000 A Total Units accounted for 90000 90000 82000 Cost Material Conversion Beginnig WIP $        120,000 $            272,000 Cost during the month $        258,000 $            695,600 Total cost $        378,000 $            967,600 ÷ Equivalent units 90000 82000 B Cost per EU $               4.20 $                11.80 C Cost of completed production Material 70000 x 4.2 294000 Conversion 70000 x 11.8 826000 Total Cost $        1,120,000 D Cost of ending wip Material 20000 x 4.2 84000 Conversion 12000 x 11.8 141600 Total Cost of June 30 EWIP $            225,600

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.