The PVC Company manufactures a high-quality plastic pipe that goes through three

Question

The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.

Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)

Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)

Prepare a cost reconciliation report for the month. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)

The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.

Explanation / Answer

Units to be accounted Units Beginning work in process 70,000 Units started during the month 3,50,000     Total Units 4,20,000 Equivalent Units Units Accounted Units Material Conversion Costs Units completed and transferred out 3,80,000 3,80,000 3,80,000 Ending work in process 40,000 30,000 10,000       Total 4,20,000 4,10,000 3,90,000 1. Compute the equivalent units for May’s activity for the first department. Equivalent Units Material Conversion Costs Equivalent units of production (Pounds) 4,10,000 3,90,000 2. Determine the costs per equivalent unit for the month. Equivalent Units Cost to be accounted Total Material Conversion costs Beginning Work in Process $1,22,000 $86,000 $36,000 Cost incurred during the month $6,45,000 $4,47,000 $1,98,000       Total costs $7,67,000 $5,33,000 $2,34,000 Equivalent units of production (Pounds) 4,10,000 3,90,000 Cost per equivalent unit $1.90 $1.30 $0.60 3. Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.) Total Material Conversion Costs Cost of units completed and transferred $7,22,000 $4,94,000 $2,28,000 Cost of ending work in process $45,000 $39,000 $6,000      Total cost allocated $7,67,000 $5,33,000 $2,34,000 COST RECONCILIATION Total Material Conversion Costs Cost to be accounted for Beginning Work in Process $1,22,000 $86,000 $36,000 Cost incurred during the month $6,45,000 $4,47,000 $1,98,000       Total costs to be accounted for $7,67,000 $5,33,000 $2,34,000 Cost Accounted for as follows: Cost of units completed and transferred $7,22,000 $4,94,000 $2,28,000 Cost of ending work in process $45,000 $39,000 $6,000      Total cost accounted for $7,67,000 $5,33,000 $2,34,000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.