The assembly division of Marzollo Time Pieces, Inc. uses the weighted-average me

Question

The assembly division of Marzollo Time Pieces, Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2014:

Requirement

Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units first, then calculate the equivalent units.

Physical Units Direct Conversion (Watches) Materials Costs 75 520 470 125 $432,500 $71,250 Beginning work in process (May 1) Started in May 2014 Completed during May 2014 Ending work in process (May 31) Total costs added during May 2014 Degree of completion: direct materials, 90%, conversion costs, 40% b Degree of completion: direct materials, 64%, conversion costs, 32%. $3,225,000 $1,395,000

Explanation / Answer

Calculate equivalent unit : Weighted average method

Equivalent unit Physical unit % material % conversion cost Work in process beginning 75 Started during current period 520 To account for 595 Completed and transferred out during current period 470 100% 470 100% 470 Work in process ending 125 64% 80 32% 40 Accounted for 595 Equivalent unit of work done to date 550 510

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