Question

Selected production and cost data of Laura's Caliper Co. follow for May 2018: (Click the icon to view the production and cost data) On May 31, the Mixing Department ending Work-in-Process Inventory was 80% complete for materials and 45% complete for conversion costs. The Heating Department ending Work-in-Process Inventory was 60% complete for materials and 35% complete for conversion costs. The company uses the weighted average method. Read the requirements. i Requirements Requirement 1. Compute the equivalent units of production for direct materials and for conversion costs for the Mixing Department. Complete the partial production cost report below for the Mixing Department, showing the equivalent units of production for direct materials and for conversion costs. 1. Compute the equivalent units of production for direct materials and for conversion costs for the Mixing Department 2. Compute the equivalent units of production for transferred in costs, direct materials, and conversion costs for the Heating Department Laura's Caliper Co. Production Cost Report - Mixing Department (Partial) Month Ended May 31 Equivalent Units Physical Direct Conversion UNITS Units Materials Costs Units accounted for: i Data Table Print Done Mixing Department Heating Department Units to account for: Beginning work-in-process, April 30 Started in May 10,000 25,000 90,000 Total units accounted for Transferred in during May 90,000 100,000 115,000 Total units to account for Units accounted for: Completed and transferred out during May Ending work-in-process, May 31 Choose from any list or enter any number in the input fields and then click Check 90,000 25,000 115,000 82,000 18,000 100,000 Total units accounted for - part Check Answer

Answer 1

1. Equivalent units for Material and Conversion cost of Mixing Dept. Equivalent Unit Material Conversion Physical units Units to be accounted for:- Units Completed & transferred out Ending work in Process Total Units 90000 25000 115000 90000 20000 110000 90000 11250 101250 Ending WIP = Units in ending WIP x Percentage complete 25000 x 80% 25000 x 45% 2. Equivalent units for Material and Conversion cost of Heating Dept. Equivalent Unit Conversion cost Physical units Transferred-in Direct Material 82000 Units to be accounted for:- Units Completed & transferred out Ending work in Process, December 31 Total Equivalent Units 82000 18000 100000 82000 18000 100000 10800 82000 6300 88300 92800 Ending WIP = Units in ending WIP x Percentage complete 18000 x 100% 18000 x 60% 18000 x 35% Ending inventory is 100% complete in regards of units transferred in, 60% complete in regards of material and 35 % complete in regards of conversion cost.