Question

Required information (The following information applies to the questions displayed below.) Qualco manufactures a single product in two departments: Cutting and Assembly. During May, the Cutting department completed a number of units of a product and transferred them to Assembly. Of these transferred units, 39,100 were in process in the Cutting department at the beginning of May and 166,500 were started and completed in May. May's Cutting department beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of May, 52,900 additional units were in process in the Cutting department and were 60% complete with respect to materials and 20% complete with respect to conversion. The Cutting department had $556,088 of direct materials and $461,242 of conversion cost charged to it during May. Its beginning inventory included $75,675 of direct materials cost and $30,093 of conversion cost.

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

Answer 2 Part 1) 3 Number of units transferred to Assembly 4 = from beginning inventory of cutting + units started and completed in cutting department 5 = 39100 + 166500 6 = 205600 Units 8 Part 2) 9 Equivalent Units of Production (EUP) - FIFO Method Units 39100 166500 % Materials 40% 100 60 EUP - Materials 15640 1 66500 31740 213880 % Conversion EUP - Conversion 60 23460 100 166500 20 1 0580 200540 52900 258500 258500 11 Units from beginning inventory 12 Units started and Transferred out 13 Units in ending inventory 14 Total Units 16 Part 3) 17 Cost Per Equivalent Unit of Production 18 Cost incurred during the month 19 Total Costs 20 / Equivalent units of production 21 Cost per equivalent unit of production (rounded to 2 decimals) | Costs Materials 556088 556088 213880 2.60 Costs EUP Conversion 461242 461242 200540 2.30

105768 i Cost Per EUP 2.60 2.30 3 Part 4) 4 Total costs accounted for: 5 Beginning inventory cost 6 Costs to complete units in beginning inventory -7 Direct Materials 8 Conversion 9 Total costs to complete beginning inventory 0 Costs of units transferred out -1 Direct Materials 2 Conversion 3 Total cost of units started and completed 4 Total costs of units transferred out 5 Cost of ending work in process 6 Direct Materials -7 Conversion Total costs of ending work in process 9 Total costs accounted for EUP 15640 23460 39100 EUP 166500 166500 Total Cost 40664 53958 94622 Total Cost 432900 382950 815850 Cost Per EUP 2.60 2.30 i 1016240 EUP 31740 10580 Cost Per EUP 2.60 2.30 Total Cost 82524 24334 106858 1123098