Kalox, Inc., manufactures an antacid product that passes through two departments
ID: 2421631 • Letter: K
Question
Kalox, Inc., manufactures an antacid product that passes through two departments. Data for the May for the first department follow: The beginning work in process, inventory 80% complete with respect to materials and 65% complete with respect to labor and overhead. The ending work in process inventory was 60% complete with respect to materials and 40% complete with respect to labor and overhead. Assume that the company uses the FIFO method of accounting for units and costs. Compute the equivalent units for May's activity for the first processing department. Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)Explanation / Answer
Formulas:-
No of unit
Material
Labour
Overhead
% completion
Equivalent units
% completion
Equivalent units
% completion
Equivalent units
Opening WIP
58000
100%-80%
G7*H7
100%-65%
G7*J7
100%-65%
L7*G7
Started and transferred in current
570000-G7
100%
H8*G8
100%
G8*J8
100%
L8*G8
Closing stock
37000
60%
G9*H9
40%
G9*J9
40%
L9*G9
Equilent Units
SUM(I7:I9)
SUM(K7:K9)
SUM(M7:M9)
Cost added during May
$ 6,27,670.00
$ 1,64,130.00
$ 1,91,485.00
Cost per equilent unit
I11/I10
K11/K10
M11/M10
No of unit Material Labour Overhead % completion Equivalent units % completion Equivalent units % completion Equivalent units Opening WIP 58000 20% 11600 35% 20300 35% 20300 Started and transferred in current 512000 100% 512000 100% 512000 100% 512000 Closing stock 37000 60% 22200 40% 14800 40% 14800 Equilent Units 545800 547100 547100 Cost added during May $ 6,27,670.00 $ 1,64,130.00 $ 1,91,485.00 Cost per equilent unit $ 1.15 $ 0.30 $ 0.35Related Questions
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