MUST SHOW ALL WORK Chaplin Corporation produces a product that passes through tw
ID: 2445027 • Letter: M
Question
MUST SHOW ALL WORK
Chaplin Corporation produces a product that passes through two departments. For October, the following equivalent unit schedule was prepared for the first department:
Materials Conversion
Units in Beginning Work in Process 15,000 100% 35%
Units Started 284,000
Units in Ending Work in Process 24,000 100% 30%
Costs assigned to beginning work-in-process:
Materials $77,490
Conversion 30,304
Manufacturing costs incurred during the month:
Materials $75,000
Conversion 60,000
Required:
Compute the number of equivalent units for materials and for conversion.
2. Compute the unit cost for October using the weighted average method. (Round unit costs to 2 decimal places.)
3. Determine the cost of goods transferred out.
4. Determine the cost of ending work-in-process.
Explanation / Answer
Equivalent Units-Materials = Units Transferred out to Next dept./Finished goods+Units in the Closing Working Progress*% of completion with respect to relevant cost component
= 275000+24000*100%=275000+24000=299000
Equivalent Units-Conversion = 275000+24000*30%=275000+7200=282200
Beginning Balance +Transfer in = Transfer out+Ending Balance
15000+284000=Transfer Out+24000
Transfer Out= 299000-24000=275000 Units
Materials Conversion
Beginning Working Progress 77490 30304
Manufacturing Cost During the Month 75000 60000
---------- ----------
Total 152490 90304
Equivalent Units 299000 282200
Unit Cost .51 .32
Units Transferred Out 275000 275000
Cost of Units Transferred Out 140250 88000
Units of Closing WIP 24000 7200
Cost of Clossing WIP 12240 2304
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