Levittown Company employs a process cost system for its manufacturing operations
ID: 2468166 • Letter: L
Question
Levittown Company employs a process cost system for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs are added proportionately. Levittown's production quantity schedule for November is reproduced in the next column.
Work-in-process November 1 (60% completed as to conversion costs) =1,000
Units started during November=5,000
Total units to account for= 6,000
Units completed and transferred out from beginning inventory=1,000
Units started and completed during November= 3,000
Work-in-process on November 30 (20% complete as to conversion costs) = 2,000
Total units to be accounted for= 6,000
1. Using the FIFO method, Levittown's equivalent units for conversion costs for November are?
2. Using the FIFO method, Levittown's equivalent units for direct materials for November are?
3. Using the Weighted- Average method, Levittown's equivalent units for direct materials for November are?
4. Using the Weighted-Average method, Levittown's equivalent units for conversions costa for November are?
Explanation / Answer
Answers to questions (1) & (2) Equvalent units for conversion costs = 3800 Equivalent units for direct materials = 5000 Computation of Equivalent Units (FIFO) Physical Equivalent Units Units Materials Conversion costs beginning work in process 1000 0 400 started & completed during the month 3000 3000 3000 ending work in process 2000 2000 400 5000 3800 Answers to questions (3) & (4) Equivalent units for direct materials = 6000 Equvalent units for conversion costs = 4400 Computation of Equivalent Units (Weighted Average) Physical Equivalent Units Units Materials Conversion costs completed and transferred 4000 4000 4000 ending work in process 2000 2000 400 6000 4400
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