4. Pacific Products completed and transferred 150,000 particle board units of pr
ID: 2652760 • Letter: 4
Question
4. Pacific Products completed and transferred 150,000 particle board units of production from the Pressing Department. There were 5,000 units on the beginning inventory in process in the department, 60% complete. The end inventory that period had 14,000 units, which were 55% complete. All materials are added at the beginning of the process. The conversion cost is $1.50 per unit and material cost is $1.80 per unit.
Determine the following for Pressing Department:
a)Draw the table for equivalent units showed in class, and calculate the equivalent units for material and conversion costs
b)Calculate the total material cost for the Pressing Department
c)Calculate the total conversion cost for the Pressing Department
Explanation / Answer
a)Draw the table for equivalent units showed in class, and calculate the equivalent units for material and conversion costs
Answer
Equivalent units for material = 164000
Equivalent units for conversion costs = 157700
b)Calculate the total material cost for the Pressing Department
Total material cost for the Pressing Department = Equivalent units for material * material cost per unit
Total material cost for the Pressing Department = 164000*1.80
Total material cost for the Pressing Department = $ 295,200
c)Calculate the total conversion cost for the Pressing Department
Total conversion cost for the Pressing Department = Equivalent units for conversion cost * conversion cost per unit
Total conversion cost for the Pressing Department = 157700*1.50
Total conversion cost for the Pressing Department = $ 236,550
Calculation of Equivalent Unit (as per Weighted Avg Method) Whole Unit Materials Conversion Cost % of Completion Equivalent Unit % of Completion Equivalent Unit Unit Completed & transferred 150000 100% 150000 100% 150000 Closing WIP 14000 100% 14000 55% 7700 Total Equivalent Unit 164000 157700Related Questions
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