Question

Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process.

Work in process, June 1—50,000 units:
Direct material: 100% complete, cost of	$	107,500
Conversion: 40% complete, cost of		115,200
Balance in work in process, June 1	$	222,700
Units started during June		200,000
Units completed during June and transferred out to finished-goods inventory		200,000
Work in process, June 30:
Direct material: 100% complete
Conversion: 60% complete
Costs incurred during June:
Direct material	$	492,500
Conversion costs:
Direct labor	$	80,450
Applied manufacturing overhead		241,350
Total conversion costs	$	321,800

Required:

Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing.

1. Analysis of physical flow of units.

2. Calculation of equivalent units.

3. Computation of unit costs.

4. Analysis of total costs.

Complete this question by entering your answers in the tabs below

Required 1

Analysis of physical flow of units

• Required 2

Calculation of equivalent units.

	Equivalent Units Physical Units Direct Material Conversion Total units accounted for Total equivalent units

Required 3

Computation of unit costs. (Round "Cost per equivalent unit" to 2 decimal places.)

	Direct Material Conversion Total 0 Total costs to account for Equivalent units Costs per equivalent unit

Required 4

• Required 4

Analysis of total costs. (Round "Cost per equivalent unit" to 2 decimal places.)

	Number of Equivalent Units Cost per Equivalent Unit Total Cost Cost of goods completed and transferred Direct material (Ending WIP Inventory) Conversion (Ending WIP Inventory) Total costs accounted for

Answer 1

Answer

• Requirement 1

Physical Flow

Units to account for:
Beginning WIP	50,000
Units started this period	200,000
Total Units to account for	250,000
Total Units accounted for:
Completed & Transferred out	200,000
Ending WIP	50,000
Total Units accounted for	250,000

• Requirement 2

		Equivalent Units
	Physical Units	Direct Material	Conversion
Unit completed and transferred	200,000	200,000	200,000
Units in Ending WIP	50,000	50,000	30,000
Total units accounted for	200,000
Total equivalent units		250,000	230,000

• Requirement 3

	Direct Material	Conversion	Total
Cost of Beginning WIP	$107,500	$115,200	$222,700
Cost incurred this period	$492,500	$321,800	$814,300
			$0
Total costs to account for	$600,000	$437,000	$1,037,000
Equivalent units	$250,000	$230,000
Costs per equivalent unit	$2.40	$1.90	$4.30

• Requirement 4

	Number of Equivalent Units	Cost per Equivalent Unit	Total Cost
Cost of goods completed and transferred	$200,000	$4.30	$860,000
Direct material (Ending WIP Inventory)	$50,000	$2.40	$120,000
Conversion (Ending WIP Inventory)	$30,000	$1.90	$57,000
Total costs accounted for			$1,037,000