CH 04 Question 1 (of 2) Exercise 4-8 Equivalent Units and Cost per Equivalent Un

Question

CH 04 Question 1 (of 2) Exercise 4-8 Equivalent Units and Cost per Equivalent Unit-Weighted-A produces prefabricated flooring in a series of steps carried out in production departments of processing in Helx Corporation All of the material that is used in the first production department is added at the beginning that department. Data for May for the first production department follow: Units 71,000 65% 51,000 40% Percent Complete Materials Conversi 30% 20% Work in process inventory, May 1 Work in process inventory, May 31 Materials cost in work in process inventory, May 1 Conversion cost in work in process inventory, May 1 Units started into production Units transferred to the next production department $56,700 S 16,800 260,600 280,600 $ 385,770 $ 242,012 Materials cost added during May Conversion cost added during May Required: 1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for May for the first process. Convers Equivalent units of production 2. Compute the costs per equivalent unit for May for the first process. (Round your answers to 2 decimal places.)

Explanation / Answer

1. Equivalent units of production: Material conversion Units transferred to the next Department 280,600 280,600 Ending work in process(51000 units) 20400(40%) 10200(20%) Equivalent units of production 301,000 290,800 2. Cost per equivalent unit: Material conversion Cost of beginning work in process 56700 $16,800 Cost added during the period $385,770 $242,012 Total cost(a) $442,470 $258,812 Equivalent units of production(b) 301,000 290,800 Cost per equivalent unit(a/b) $1.47 $0.89 3. Cost of Ending WIP and Unit compelete d& Transferred Material conversion Ending WIP (Unit) 20400 10200 Cost per equivalent unit $1.47 $0.89 VAlue of Ending WIP $29,988.00 $9,078.00 Cost of Unit Completed & Transferred Put 280600 280600 Cost per equivalent unit $1.47 $0.89 VAlue of Unit Completed & Transferred Out $412,482.00 $249,734.00

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