Question

URGENT in two hours.

Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May:

	Percent Completed
	Tons of Pulp	Materials		Conversion
Work-in-Process Inventory, May 1	4,000	100	%	50	%
Started during May	15,000
Units to account for	19,000
Units from beginning Work-in-Process, which were completed and transferred out during May	4,000
Started and completed during May	9,000
Work-in-Process Inventory, May 31	6,000	100	%	50	%
Total units accounted for	19,000

The following cost data are available:

Work-in-Process Inventory, May 1
Direct materials	$	52,060
Conversion		19,200
Costs incurred during May
Direct materials		236,550
Conversion		392,000

Required:

1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method.

2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.

Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company's production schedule for May Percent Completed Tons of Pulp 4,000 15,000 19,000 Materials Conversion 100% 505 Work-in-Process Inventory, May 1 Started during May Units to account for Units from beginning Work-in-Process, which were completed and transferred out during May Started and completed during May Work-in-Process Inventory, May 31 Total units accounted for 4,000 9,000 6,000 19,000 100% 50% The following cost data are available: Work-in-Process Inventory, May 1 Direct materials Conversion Costs incurred during May Direct materials Conversion $ 52,060 19,200 236,550 392,000 Required: 1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted average method. 2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.

Answer 1

Solution o Page! Requirement I Statement of Equinalent Units of Diant Materials and 아 Conversion (Using Weighted - Average Method) % Direct % Complete Materials Complete Conversion Units completed and 100% 13,000 100% 13,000 transferred out (1,000+1000) Ending Work in Process 100% 6,000 3.000 Inventory Units, May 31 Units 14,000 Equivalent 16000 Answer lo valent Units 50% Equivalent Units Dirut Materials Conversion 19,000 16,000

Requirement 2 Payez Calculation of Cost per equintent unit for both dirut materials and conversion (using weighted average method) Direct Conversion Cost of beginning Work in Praess $52,060 $19,200 Materials Inscentney, May! Cost incurred during May $236,550 $342,000 $288,610 $40,200 19,000 16000 Total Cost (A) a 응 Equinalent Units (B) Cost bea Equivalent Wit (A3B) Auswer 2 2 $15.19 $25.70 Direct Materials Conversion Cost per Equivalent Unit $15.14 $ 25.70