Question

Question 2 Not complete Marked out of 1.25 P Flag question Equivalent Units and Product Cost Report-Weighted Average Method In its first month's operations (January 2019), Schramiski Company's Department 1 incurred charges of $120,000 for direct materials (10,000 units), $29,875 for direct labor, and $58,000 for manufacturing overhead. At month-end, 9,000 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costs. Assuming Schramiski uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following: a. The equivalent units of materials and conversion costs. b. The cost per equivalent unit of materials and conversion costs. C. The total cost assigned to the units transferred out. Support d. The total cost assigned to the ending inventory. e. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for. Round average cost per equivalent unit to two decimal places, if applicable. Round other answers to the nearest whole number, when appropriate. Schramiski Company Department 1 Flow of Units and Equivalent Units Calculation Equivalent Units % Work Direct % Work done Materials Done Complete/Transferred Ending Inventory Total Conversion Costs Product Cost Report Direct Conversion

Answer 1

Answer:

Schramiski Company Department 1 Flows of units and Equivalent Units Calculation Equivalent Units Direct % Work % Work done materials done Conversion cost Complete/ Transferred Ending Inventory Total 9,000 1,000 10,000 100% 100% a. 9,000 1,000 10,000 100% 25% 9,000 250 9,250 a. Product Cost Report Conversion Direct materials cost $207,875 $207,875 $0 $120,000 $120,000 10,000 $12.00 b. $87,875 $87,875 9,250 $9.50 b. Beginning Inventory Current Total cost to Account for - Total Equivalent Units Average Cost / Equivalent unit Complete / Transferred: Direct Materials Conversion cost Cost of Goods Manufactured Ending Inventory Direct Materials Conversion cost Cost of Ending Inventory Total cost Allocated $108,000 $85,500 $193,500 c. $12,000 $2,375 $14,375 d. $207,875 e.

Conversion cost = Direct labor + Manufacturing overhead = 29875 + 58000 = $87,875