Question

The following data pertain to the Hercules Tire and Rubber Company for the month of May. 60,000 75,000 10,000 75,000 $ 135,000 Work in process, May 1 (in units) Units started during May Total units to account for Units completed and transferred out during May Work in process, May 31 (in units) Total equivalent units: direct material Total equivalent units: conversion Work in process, May 1: direct material Work in process, May 1: conversion Costs incurred during May: direct material Costs incurred during May: conversion Work in process, May 1: total cost Total costs incurred during May Total costs to account for Cost per equivalent unit: direct material Cost per equivalent unit: conversion Total cost per equivalent unit Cost of goods completed and transferred out during May Cost remaining in ending work-in-process inventory: direct material Cost remaining in ending work-in-process inventory: conversion Total cost of May 31 work in process 832,250 172,500 1,402, 250 1,574,750 9.40 vue 73,500 167,500 Additional Information: a. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process. b. Hercules uses weighted average process costing. c. The May 1 work in process was 20 percent complete as to conversion. d. The May 31 work in process was 60 percent complete as to conversion.

Answer 1

1.

Work in Process, May 1 (units)	15000	=75000-60000
Units completed and transferred	65000	=75000-10000
Total Equivalent units : conversion	71000	=65000+10000*60%
Work in Process, May 1 conversion	$                37,500	=172500-135000
Costs incurred during may : direct material	$              570,000	=1402250-832250
Cost per equivalent unit : conversion	$                   12.25
Cost of goods completed and transferred out	$          1,407,250
Cost remaining in ending work in process inventory : direct material	$                94,000

2.

		Equivalent units
	Physical units	Direct Material	Conversion
Units completed and transferred out	65000	65000	65000
Work in Process, May 31	10000	10000	6000
Total units accounted for	75000
Total Equivalent units		75000	71000

3.

	Direct Material	Conversion	Total
Work in Process, May 1	$              135,000	$                  37,500	$             172,500
Costs incurred during May	$              570,000	$                832,250	$          1,402,250
Total Costs to account for	$              705,000	$                869,750	$          1,574,750
Equivalent units	75000	71000
Cost per Equivalent unit	$                     9.40	$                    12.25	$                  21.65

4.

	No of Equivalent units	Cost per Equivalent units	Total Cost
Cost of goods completed and transferred	65000	$                    21.65	$          1,407,250
Cost remaining in May 31 work in process
Direct Material	10000	$                       9.40	$                94,000
Conversion	6000	$                    12.25	$                73,500
Total Cost of May 31, work in process			$             167,500