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kmarks People Window Help tte 39% to wed 1:55 PM ndo nment-take&inprogress; fals

ID: 2510523 • Letter: K

Question



kmarks People Window Help tte 39% to wed 1:55 PM ndo nment-take&inprogress; false Problem 6-3 Scott Inc., manufactures a product that passes through two processes: modng and molding. All manufacturing costs are added uniformmly in the mixing department Information for the mbing department for May follows Work in process, May 1: units (45% complete) Direct materials Direct labor 10,000 $23,000 $37,000 $15,000 During May, 65,000 units were completed and transferred to the molding department. The following costs were incurned by the moing department during May 115,000 $140,000 $55,000 Direct materials Direct labor By May 31, 4,000 units that were 80 percent complete remained in Mixing. Scott uses the weighted average method. Required: A. Calculate the equivalent units of production using the weighted average method B. Calculate the total costs to account for 4 MacBook Air 8 9 0

Explanation / Answer

(a) Equivalent unit of Production

Completed Units = 65000

Closing Units = 3200 (4000*80%)

Total = 68200

(b)Total Cost

Material = 138000 (23000+115000)

Conversion Cost = 247000 (37000+15000+140000+55000)

Total = 385000

3. Cost per equivalent units = 385000/68200 = 5.645

4. Cost of goods transferred to molding Deptt = units transferred * Cost per unit

= 65000* 5.645 = 366925

5. WIP at mixing Deptt = Closing equivalent units *  Cost per unit

= 3200 * 5.645 = 18064