The Welding Dept. has the following production and manufacturing cost data for F
ID: 2502336 • Letter: T
Question
The Welding Dept. has the following production and manufacturing cost data for February 2012.
Beginning WIP Cost
Materials $117,600
Labor $58,800
MOH $20,000
Cost Added During the Month
Materials $352,800
Labor $186,400
MOH $50,000
Beginning WIP Units 15,000
Materials - 4.5/10 complete
Labor-3/10 Complete
MOH-3/10 Complete
Units Started during Month ??????
Units Transferred Out 72,000
Ending WIP Units 8,000
Materials -8/10 complete
Labor- 8.5/10 Complete
MOH- 8.5/10 Complete
1 How many units were Started during the Month?
2 What are the TOTAL equivalent units of production for Materials?
3 What are the equivalent units of production for Materials remaining in WIP?
4 What are the TOTAL equivalent units of production for Conversion Costs?
5 What are the equivalent units of production for Conversion Costs remaining in WIP?
6 How much in Material Cost was transferred out of WIP?
7 How much in Material Cost remained in WIP?
8 How much in Conversion Cost was transferred out of WIP?
9 How much in Conversion Cost remained in WIP?
Explanation / Answer
)
1 How many units were Started during the Month?
Started during the Month = Units Transferred Out + Ending WIP Units - Beginning WIP Units
Started during the Month =72000+ 8000 - 15000
Started during the Month = 65000 Unit
2 What are the TOTAL equivalent units of production for Materials?
TOTAL equivalent units of production for Materials = 78400 unit
3 What are the equivalent units of production for Materials remaining in WIP?
the equivalent units of production for Materials remaining in WIP = 6400
4 What are the TOTAL equivalent units of production for Conversion Costs?
TOTAL equivalent units of production for Conversion Costs = 78800
5 What are the equivalent units of production for Conversion Costs remaining in WIP?
The equivalent units of production for Conversion Costs remaining in WIP = 6800
6 How much in Material Cost was transferred out of WIP?
Material Cost was transferred out of WIP = (117600+352800)/78400*15000 = $ 90000
7 How much in Material Cost remained in WIP?
Material Cost remained in WIP = (117600+352800)/78400*6400 = 38400
8 How much in Conversion Cost was transferred out of WIP?
Conversion Cost was transferred out of WIP = (58800 + 20000 + 186400 + 5000)/78800 * 15000 = $ 51,434.01
9 How much in Conversion Cost remained in WIP?
Conversion Cost remained in WIP = (58800 + 20000 + 186400 + 5000)/78800 * 6800 = $ 23,316.75
Calculation of Equivalent Unit (as per Weighted Method)Unit Direct Material Conversion Cost
% of Completion Equivalent Unit % of Completion Equivalent Unit
Beginning WIP 15000 100% 15000 100% 15000
Unit Started & Completed 57000 100% 57000 100% 57000
Closing WIP 8000 80% 6400 85% 6800
Total Equivalent Unit
78400
78800
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.