Question

Prpure Exercise 6-35 Weighted Cassien Inc. manufactures ted Average Method, Unit Cost, Valuing Inventories roducts that pass through Inc. manura computed using the weighted average method: two or more processes. During June, OBJECTIVE aquivalent units were Units completed ts in EWIP X Fraction complete (36,000 x 60%) Equivalent units of output 53,400 21,600 75,000 e's costs to account for are as follows: Jun BWIP ( 10,000 units, 80% complete) Materials Conversion costs S 50,000 90,000 34,000 $174,000 Total Required iculate the unit cost for June using the weighted average method. Caleculthe weighted average method, determine the cost of EWIP and the cost of the goods transferred out TACONNECTION Cassien had just finished implementing a series of measures : CONCEPTUAL ed to reduce the unit cost to $2.00 and was assured that this had been achieved and design dbould be realized for June's production; yet upon seeing the unit cost for June, the presi- t of the company was disappointed. Can you explain why the full effect of the cost reductions may not show up in June? What can you suggest to overcome this problem?

Answer 1

<asslen Tnt Manuldur pwodluu *haf pots through fe or mere Anssf)unit ostToto Cost / Total quivalent unH 15 oo c 2-32 pax unit a ost oj ending k $ 5o,112 - 12 3, 88 &