The Matsui Lubricants plant uses the weighted-average method to account for its
ID: 2567358 • Letter: T
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:
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 Direct materials Conversion costs Current period costs Direct materials Conversion costs $ 962 497 21,390 12,537 Quantity information is obtained from the manufacturing records and includes the following: Beginning inventory 600 units (60% complete as to materials. 56% complete as to conversion) Current period units started Ending inventory 5,500 units 1,700 units (40% complete as to materials, 15% complete as to conversion) 3 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 (2) Compute the cost per equivalent unit for direct materials and conversion costs. (Round your answers to 2 decimal places.)Explanation / Answer
a. Equivalent Units statement Material Conversion Units Input Particulars Units Output Equivalent units % complete Equivalent units % complete 600 Opening WIP 5500 Input Finished Goods 4400 4400 100% 4400 100% Closing WIP 1700 680 40% 255 15% 6100 6100 5080 4655 Equivalent units for Material 5080 units Equivalent units for conversion 4655 units b. Statement Showing cost per unit Cost of Opening WIP Current Cost Total Equivalent Units Cost per Eq. Unit Material 962 21390 22352 5080 4.4 Conversion 497 12537 13034 4655 2.8 Cost per Eq. unit Material 4.40 per unit Conversion 2.80 per unit
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.