Louisville Sports manufactures baseball bats for use by players in the major lea
ID: 2459280 • Letter: L
Question
Louisville Sports manufactures baseball bats for use by players in the major leagues. A critical requirement for elite players is that each bat they use have an identical look and feel, as a result, Louisville uses a dedicated process to produce bats to each players specifications. One of Louisvilles key clients is Ryan Brown of the Green Bay Brewers. Producing his bat involves the use of three materials ash, cork and ink and a sequence of 20 standardized steps. Materials are added as follows:
Ash - This is the basic wood used in bats. Eighty percent of the ash content is added at the start of the process, the rest is added at the start of the 16th step in the process.
Cork - This is inserted into the bat in order to increase Ryan's bat speed. Half of the cork is introduced at the beginning ofthe seventh step ofthe process; the rest is added at the beginning of the 14th step.
Ink - This is used to stamp Ryans name on the finished bat and is added at the end of the process.
Of the total conversion costs, 6% are added during each of the first 10 steps of the process, and 4% are added at each of the remaining 10 steps.
On May 1, 2014, Louisville had 100 bats in inventory. these bats had completed the ninth step of the process as of April 30, 2014. Louisville put another 60 bats into production. At the end of May, Louisville was left with 40 bats that had completed the 12th step of the production process.
1) Under the weighted-average method of process costing, compute equivalent units of work done for each relevant input for the month of May.
2) Under the FIFO method of process costing,compute equivalent units of work done for each relevant input for the month of May.
Explanation / Answer
Answer:1
Answer:2
Weighted - Average method Step 1 Step 2 Flow of production Physical units Equivalent units Conversion costs Ash Cork Ink Work in process (beginning given) 100 Started during current period (given) 60 To account for 160 Completed and transferred out during current period 120 120 120 120 120 Work in process (ending given) 40 32 20 0 27.2 Accounted for 160 Equivalent units of work done to date 152 140 120 147.2 *Degree of completion in this department: Step 12 of production process: Ash, 80%; Cork, 50%; Ink,0%; Conversion costs,(6%*10 steps) + (4% * 2 steps) = 68%Related Questions
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