Question

Document34.docx 458 23 1350 Assignment #3 - Saved View I Help Open in Desktop App Tell me what you want to do U OV A " Evv ... Normal No S Page Break Question 3 (12 Marks) John Doe Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information: Uits Material Convention 100,000 500.000 $100,000 Work in process, Jan. 1 80% complete with respect to convention costs Units started into production Corts added during the year Materials Conversion Units completed during the year $157,500 $650.000 $997.500 450.000 The company uses the weighted average method in its process costing system. The ending inventory is 50% complete with respect to conversion costs. Required: a) Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. (6 Marks) b) Determine the cost transferred to finished goods. (4 Marks) c) Determine the amount of cost that should be assigned to the ending work-in-process inventory. (2 Marks) Page Break Question 4 (14 Marks)

Answer 1

% Work done % Work done Materials Conversion Units accounted for: Completed transferred Ending Inventory Equivalent Units 450,000 150,000 600,000 100% 100% 450,000 150,000 600,000 100% 50% 450,000 75,000 525,000 Beginning Inventory Current Total costs to Account for Divided by: Total Equivalent Units Average cost/Equivalent units Materials Conversion $257,500 $100,000 $157,500 $1,647,500 $650,000 $997,500 $1,905,000 $750,000 $1,155,000 600,000 525,000 $1.25 $2.20 b) Completed transferred Direct Materials Conversion Cost of Goods Manufactured $562,500 $990,000 $1,552,500 c) Ending Incentory Direct Materials Conversion Cost of Ending Inventory $187,500 $165,000 $352,500