Le Roi du Plastique Sarl has two processes – extrusion and thermo-assembly. Cons
ID: 2512044 • Letter: L
Question
Le Roi du Plastique Sarl has two processes – extrusion and thermo-assembly. Consider the June
2015 data for physical units in the thermo-assembly process of Le Roi du Plastique: opening
work in progress, 15 000 units; transferred in from the Extruding Department during September,
9000; closing work in progress, 5000. Direct materials are added when the process in the Thermo-
assembly Department is 80% complete. Conversion costs are added evenly during the process. Le
Roi du Plastique uses the weighted-average process-costing method. The following information is available.
Required
1 For each cost element, calculate equivalent units of (a) opening work in progress and (b) work done in the current period.
2 For each cost element, calculate the equivalent units in closing work in progress.
3 (a) For each cost element, calculate the percentage of completion of opening work-in-progress stock and (b) for each cost element, calculate the percentage of completion of closing work-in-progress stock.
Transferred- Direct materials Conversion in costs 90 000 6 costs Opening work in progress at cost Cost per equivalent unit of opening 45 000 work in progress 5 58 500 57 000 57 200 Costs added in current period Cost per equivalent unit of work done in current period 6.50 3 5.20Explanation / Answer
Solution 1:
Solution 2:
Total units in closing WIP = 5000 units
Total units completed during the period = 15000 + 9000 - 5000 = 19000
% completion of conversion cost in opening WIP = 9000/15000 = 60%
Equivalant unit of opening WIP completed during the period with respect to conversion cost = 15000*40% = 6000 units
Equivalant units of unit started and completed during the period with respect to conversion cost = 19000 - 15000 = 4000
Therefore equivalant units in closing WIP with respect to conversion cost = 11000 - 6000 - 4000 = 1000 units
% completion of closing WIP with respect to conversion cost = 1000/5000 = 20%
As % completion is 20% only, therefore equivalant units of material in closing WIP = 0 units
Equivalant unit of Transferred In cost in closing WIP = 5000 units
Solution 3:
% completion of opening WIP:
Transferred in Cost = 100%
Conversion = 9000 / 15000 = 60%
Material = 0%
% Completion in ending WIP:
Transferred In = 100%
Direct material = 0%
Conversion = 1000/5000 = 20%
Computation of Equivalent units Particulars Transferred In Direct Materials Direct Labor Opening WIP Cost 90,000.00 € 0.00 € 45,000.00 € Cost per equivalent unit of opening WIP 6.00 € 5.00 € Equiavalents units in opening WIP 15000 0 9000 Cost added in current period 58,500.00 € 57,000.00 € 57,200.00 € Cost per equivalent unit of work done in current period 6.50 € 3.00 € 5.20 € Equivalent unit of work done in current period 9000 19000 11000Related Questions
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