The Matsui Lubricants plant uses the weighted-average method to account for its

Question

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day: Beginning WIP inventory $ 986 317 Direct materials Conversion costs Current period costs Direct materials Conversion costs 12,390 6,083 Quantity information is obtained from the manufacturing records and includes the following: Beginning inventory 600 units (60% complete as to materials, 53% complete as to conversion) Current period units started Ending inventory 4,300 units 1,200 units (40% complete as to materials, 25% complete as to conversion) value: Required information 7.50 points Required: (1) Compute the equivalent units for the materials and conversion cost calculations. Equivalent units for materials Equivalent units for conversion costs

Explanation / Answer

Matsui Lubricants Plants Production Cost Worksheet Weighted Average Method Flow of Production Total Material Conversion WIP Beginning 600 Started during Period 4300 To Account for 4900 Units Completed Complted & Transferred out=(600+(4300-1200)) 3700 3700 3700 WIP,Ending=(1200*40%) for Mateerial,(1200*25%) for conversion 1200 480 300 Total Units accounted for 4900 4180 4000 1) Equivalent Units of Material 4180 Equivalent Units of Conversion 4000 Cost per Equivalent Units of Material & Conversion Total Material Conversion Cost to be accounted for Cost at the beginning WIP Inventory $             1,303.00 $           986.00 $           317.00 Current Period cost $           18,473.00 $     12,390.00 $        6,083.00 Total Cost to be accounted for $           19,776.00 $     13,376.00 $        6,400.00 Cost per Equivalent Units=($13376/4180) for Material,($6400/4000) for conversion $                3.20 $                1.60 2) Cost Per Equivalent Units Material $                     3.20 Conversion cost $                     1.60

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