Louisville Sports manufactures baseball bats for use by platers in the major lea
ID: 2465459 • Letter: L
Question
Louisville Sports manufactures baseball bats for use by platers 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 player’s specifications.
One of Louisville’s key clients is Ryan Brown of the Green Bay Brewers. Producing his bar 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 ask content is added at the state of the process; the rest is added at the start of the 16th step.
Cork: This is inserted into the bat in order to increase Ryan’s bat speed. Half of the cork is introduced at the beginning of the seventh step of the process; the rest is added at the beginning of the 14th step.
Ink: This is used to stamp Ryan’s 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 1 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 bars had completed the 9th step of the process as of April, 30, 2014. During May, 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.
Can I have some help with this please, thank you!
Explanation / Answer
Solution.
Note: Since the given problem does not require to calculation of equivalent costs of production as no data for the same is given, we have just worked out equivalent production units with the best use of data given in the problem.
Calculation of Equivalent production in the month of May-
1. Under Weighted Average Method
2. FIFO Method
Transferred-in Ash Cork Ink Conversion Costs Units in beginning (1st May WIp) (A) 0 100 100 100 100 % of completion of beginning WIP in previous period (B) 0% 80% 50% 0% 54% % of beginning WIP completed this period [C=100%-B] 100% 20% 50% 100% 46% Equivalent units in beginning WIP [D=A×C] - 20 50 100 46 Units both started and completed in current period (E) 20(60-40) 20
(60-40) 20
(60-40)
20
(60-40) 20
(60-40) Units of ending WIP (F) 40 40 40 40 40 Percentage of completion of ending WIP (G) 100% 80% 50% 0% 68% Equivalent units in ending WIP (H=F×G) 40 32 20 0 27.2 Total equivalent units (D+E+H) 60 72 90 120 93.2
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.