x.Hmputers, LTD., located in Liverpool, England, assembles a standardized person
ID: 2433280 • Letter: X
Question
x.Hmputers, LTD., located in Liverpool, England, assembles a standardized personalcomputer from parts it purchases from various suppliers. The production process consists
of several steps, starting with assembly of the “mother” circuit board, which contains the
central processing unit. This assembly takes place in the CPU Assembly Department. The
company recently hired a new accountant who prepared the following partial production
report for the department for January using the weighted-average method:
Quantity Schedule:
Units to be accounted for:
Work in process, January 01 10,000
(Materials 90% complete; Conversion 80% complete)
Started into production 58,000
Total units 68,000
Units accounted for as follows:
Completed and transferred out 60,000
Work in Process, January 31 8,000
(Materials 75% complete; Conversion 50% complete)
Total units 68,000
Total Cost:
Cost to be accounted for:
Work in Process, January 01 £ 26,800
Cost added in the department 175,600
Total cost £ 202,400
Cost Reconciliation:
Cost accounted for as follows:
Completed and transferred out £ 186,000
Work in Process, January 31 16,400
Total cost £ 202,400
The company’s management would like some additional information about January’s
operation in the CPU Assembly Department. (The currency in England is the pound,
which is denoted by the symbol “£”.)
Required:
1. How many units were stared and completed during January?
2. What were the equivalent units for January for material and conversion costs?
3. What were the costs per equivalent unit for January? The following additional
data are available concerning the department’s cost:
Particular Total
£
Material
Explanation / Answer
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