Question

chapter 5 class exercise special problem for S02 Home View Insert X Out С серу: Formulas Data A- A A Page Layout Calibr (Body IUL fx Review = = ES Wrap Tout Marge A Center General 5: % B O ) a curantena forma co Pasta 127 Formatting Table Styles x Direct Material X Completion 70% 50% Conversion Costs Completion Units 30,000 50,000 Work in process inventory, June 1 Work in process inventory, June 30 75% 25% Cost in work in process inventory, June 1 Cost added during June 54,900 575,100 $ S 120,500 908,000 310,000 Units started into production Units completed and transferred to the next department 19 1. The units to account for total 22 2. The units completed and transferred to the next department total 25 3. The equivalent units for direct material total 27 28 4. The equivalent units for conversion costs total 30 31 5. The weighted average unit cost for direct materialis 34 6. The weighted average unit cost for conversion costs is 37 7. The value for the units completed and transferred to the next department is 40 8. The value for the units remaining in the ending inventory is Sheet Sheet2 +

I miss class on Thursday so I have no Idea how to solve the problem.

Answer 1

Part 1

The units to account for total = work in process inventory June 1 + units started                into production = 30000+310000 = 340000

Part 2

The units completed and transferred to the next department total = units to account for total - work in process inventory June 30 = 340000-50000 = 290000

Part 3

The equivalent units for direct material total = units completed and transferred + work in process inventory June 30 = 290000+(50000*50%) = 315000

Part 4

The equivalent units for conversion cost total = units completed and transferred + work in process inventory June 30 = 290000+(50000*25%) = 302500

Part 5

The weighted average cost for direct material is = (cost of work in process inventory June 1 + cost added during June) / equivalent units for direct material = (54900+575100)/315000 = $2 per equivalent unit

Part 6

The weighted average cost for conversion cost is = (cost of work in process inventory June 1 + cost added during June) / equivalent units for conversion cost = (120500+908000)/302500 = $3.40 per equivalent unit

Part 7

The value for the units completed and transferred to the next department is = units completed and transferred * (direct materials cost per unit + conversion costs per unit) = 290000*(2+3.40) = $1566000

Part 8

The value for the units remaining in the ending inventory is = (50000*50%*2) + (50000*25%*3.40) = $92500