The following information applies to the questions displayed below Direct materi
ID: 2558499 • Letter: T
Question
The following information applies to the questions displayed below Direct materials are added at the beginning of the process. During November, the 785,000 units of product to finished goods. At the end of consists of 205,000 units that are 60% complete with respect to conversion. Beginning inventory had $257,400 of direct cost added is $1,725,200. Beginning work in process c in process and 721,000 units were started and completed during the period. Is and $90,800 of conversion cost. The direct material cost added in November is $1,722,600, and the conversion work 1. Determine the equivalent units of production with respect to direct materials and conversion. n (EUP) EUP EUPExplanation / Answer
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Conversion
EUP- Conversion
Units completed and transferred out
785,000
100%
785,000
100%
785,000
Ending goods in process - units
205,000
100%
205,000
60%
123,000
Total units
990,000
990,000
908,000
Cost per equivalent unit of production
Materials
Conversion
Cost of beginning goods in process
$257,400
$90,800
Costs incurred this period
1,722,600
1,725,200
Total costs
Costs
$1,980,000
Costs
$1,816,000
÷ Equivalent units of production
EUP
990,000
EUP
908,000
Cost per equivalent unit of production (rounded to 2 decimals)
$2.00
$2.00
Cost of units transferred out:
EUP
Cost per EUP
Total cost
Direct materials
785,000
$2.00
1,570,000
Conversion
785,000
$2.00
1,570,000
Total costs transferred out
$3,140,000
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
205,000
$2.00
410,000
Conversion
123,000
$2.00
246,000
Total cost of ending goods in process
$656,000
Total costs accounted for
1Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Conversion
EUP- Conversion
Units completed and transferred out
785,000
100%
785,000
100%
785,000
Ending goods in process - units
205,000
100%
205,000
60%
123,000
Total units
990,000
990,000
908,000
2Cost per equivalent unit of production
Materials
Conversion
Cost of beginning goods in process
$257,400
$90,800
Costs incurred this period
1,722,600
1,725,200
Total costs
Costs
$1,980,000
Costs
$1,816,000
÷ Equivalent units of production
EUP
990,000
EUP
908,000
Cost per equivalent unit of production (rounded to 2 decimals)
$2.00
$2.00
3Cost of units transferred out:
EUP
Cost per EUP
Total cost
Direct materials
785,000
$2.00
1,570,000
Conversion
785,000
$2.00
1,570,000
Total costs transferred out
$3,140,000
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
205,000
$2.00
410,000
Conversion
123,000
$2.00
246,000
Total cost of ending goods in process
$656,000
Total costs accounted for
$3,796,000Related Questions
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