Question

Learning Tree Corporation makes interlocking children's blocks in a single processing department. Direct materials are added at the start of production. Conversion costs are added evenly throughout production. Learning Tree uses the weighted average method of process costing. The following information for October 2017 is available. Click the icon to view the equivalent unit information. (Click the icon to view the cost information.) Read the requirements. Requirement 1. Summarize total costs to account for and calculate cost per equivalent unit for direct materials and conversion costs. Begin by summarizing the total costs to account for. Total Direct Conversion Production Costs Materials Costs Total costs to account for

Answer 1

Solution:

	Total production costs	Direct materials	Conversion costs
Work in process, beginning	26000	6000	20000
Cost added during October	100000	30000	70000
Total costs to account for	126000	36000	90000

Computation of Cost Equivalent Unit
	Direct materials	Conversion costs
Total costs to account for	36000	90000
/ Total Equivalent Units	75000	62500
Cost per Equivalent unit	0.48	1.44