Question

Required information (The following information applies to the questions displayed below.) During April, the first production department of a process manufacturing system completed its work on 405,000 units of a product and transferred them to the next department. Of these transferred units, 81,000 were in process in the production department at the beginning of April and 324,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 103,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion. Compute the number of equivalent units with respect to both materials used and conversion used in the first production department for April using the weighted-average method. Equivalent Units of Production - Weighted Average Units % Materials EUP-Materials % Conversion EUP-Conversion Total

Answer 1

Answers

• [1]

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	405,000	100%	405,000	100%	405,000
Units of ENDING WIP	103,000	80%	82,400	30%	30,900
Equivalent Units of Production			487,400		435,900

• Requirement 1 and 2

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	405,000	100%	405,000	100%	405,000
Units of ENDING WIP	103,000	80%	82,400	30%	30,900
Equivalent Units of Production			487,400		435,900
COST per EUP			Material		Conversion
Cost of Beginning WIP			$        222,485.00		$                                  65,382.00
Cost incurred during the period			$    1,434,675.00		$                            1,002,573.00
Total Costs		Costs	$    1,657,160.00	Costs	$                            1,067,955.00
Equivalent units of production		EUP	487,400	EUP	435,900
Cost per EUP			$              3.40000		$                                      2.45000

Total Costs to Account for:
Beginning Inventory - Direct Material cost	$                    222,485.00
Beginning Inventory - Conversion cost	$                      65,382.00
Cost incurred suring the period - Direct material cost	$                1,434,675.00
Cost incurred suring the period - Conversion cost	$                1,002,573.00
Total costs to account for:	$                2,725,115.00
Total costs accounted for	$                2,725,115.00
Difference due to rounding cost/unit	$                                      -

• Requirement 3

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	405,000	$                      3.40	$    1,377,000.00
- Conversion	405,000	$                      2.45	$        992,250.00
Total Cost transferred Out				$        2,369,250.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	82,400	$                      3.40	$        280,160.00
- Conversion	30,900	$                      2.45	$          75,705.00
Total cost of ending WIP				$            355,865.00
Total costs accounted for					$                            2,725,115.00

• FIFO

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	103,000	80.0%	82,400	30.0%	30,900
Units STARTED & COMPLETED	324,000	100%	324,000	100%	324,000
Units of beginning WIP	81,000	35.00%	28,350	65%	52,650
Equivalent Units of Production			434,750		407,550

• Requirement 1 and 2 FIFO

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	103,000	80.0%	82,400	30.0%	30,900
Units STARTED & COMPLETED	324,000	100%	324,000	100%	324,000
Units of beginning WIP	81,000	35.00%	28,350	65%	52,650
Equivalent Units of Production			434,750		407,550
COST per EUP			Material		Conversion
Cost incurred this period			$    1,434,675.00		$              1,002,573.00
Total Costs		Costs	$    1,434,675.00	Costs	$              1,002,573.00
Equivalent units of production		EUP	434,750	EUP	407,550
Cost per EUP			$             3.30000		$                          2.4600

Total Costs to Account for:
Beginning Inventory - Direct Material cost	$                    222,485.00
Beginning Inventory - Conversion cost	$                      65,382.00
Cost incurred suring the period - Direct material cost	$                1,434,675.00
Cost incurred suring the period - Conversion cost	$                1,002,573.00
Total costs to account for:	$                2,725,115.00
Total costs accounted for	$                2,725,115.00
Difference due to rounding cost/unit	$                                      -

• Requirement 3

Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			287,867.00
Cost to complete beginning WIP-
- Direct Materials	28,350.00	3.30	93,555.00
- Conversion	52,650.00	2.46	129,519.00
Total cost to complete beginning WIP			510,941.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	324,000.00	3.30	1,069,200.00
- Conversion	324,000.00	2.46	797,040.00
Total costs started & Completed this period			1,866,240.00
Total cost of work finished this period				2,377,181.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	82,400	$                              3.30	$       271,920.00
- Conversion	30,900	$                              2.46	$          76,014.00
Total cost of ending WIP				$             347,934.00
Total costs accounted for				$         2,725,115.00