nould be transferred out of the Work in Process m\'e state where those dollars s

Question

nould be transferred out of the Work in Process m'e state where those dollars should be transferred. 3. Repeat requirements 1 and 2 for May Process Costing: Average Costi P9. Carton Corporation produce cess has been automated, so t rather chased the automated of the process, and conversion costs are incurred uniformly throughout the P cess. Operating data for July and August are as follows: 9: Average Costing Method and Two Time Periods orpora LO5 tion produces a line of beverage cartons. The production pro- omated, so the product can now be produced in one operation ree operations that were needed before the company pur- machinery. All direct materials are added at the beginning than in the three operation automated machinery. All direct materials are added at the beginn ro- July August Beginning work in process inventory Units (July: 20% complete) Direct materials Conversion costs 20,000 $20,000 $30,000 $6,000 $6,000 Production during the month Units started Direct materials Conversion costs 70,000 $34,000 90,000 $59,000 $96,000 $130,800 Ending work in process inventory Units (July: 40% complete; August: 60% complete) 10,000 25,000

Explanation / Answer

july August

July August Material Conversion Material Conversion units transfered out 80000 80000 75000 75000 Work in progress 10000 4000 25000 15000 Equivalent units 90000 84000 100000 90000 Openning WIP Cost 20000 30000 6000 6000 Cost Incured during The Month 34000 96000 59000 130800 Total Cost 54000 126000 65000 136800 Cost per equivalent units 0.60 1.50 0.65 1.52

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