Answer:-
(a)
(1) Weighted Average |
Physical Units |
Equivalent Units |
|||
Quantities |
Material 1 |
Material 2 |
Conversion Costs |
||
Units to be accounted for |
|||||
Work in process, beginning |
16,000 |
||||
Started in May |
84,000 |
||||
Total units |
100,000 |
||||
Units accounted for |
|||||
Completed |
80,000 |
80,000 |
80,000 |
80,000 |
|
Work In process, ending |
20,000 |
||||
Material 1 (100%) |
20,000 |
||||
Material 2 (100%)1 |
20,000 |
||||
Conversion (95%) |
19,000 |
||||
Total equivalent units |
100,000 |
100,000 |
100,000 |
99,000 |
1Material 2 is added to the process at 90% completion; goods are 95% completed
(b) Cost per equivalent unit |
TOTAL |
||||
Material 1 |
Material 2 |
Conversion Costs |
|||
Production costs for May |
|||||
Work in process, beginning |
$53,725 |
$45,600 |
$0 |
$8,125 |
|
Costs incurred for May |
280,800 |
228,400 |
7,000 |
45,400 |
|
Total costs |
$334,525 |
$274,000 |
$7,000 |
$53,225 |
|
Equivalent units (from (a)) |
100,000 |
100,000 |
99,000 |
||
Cost per equivalent unit |
$3.98 |
$2.74 |
$0.70 |
$0.54 |
(2) First-in, first-out |
Physical Units |
Equivalent Units |
|||
Quantities |
Material 1 |
Material 2 |
Conversion Costs |
||
Units to be accounted for |
|||||
Work in process, beginning |
16,000 |
||||
Started in May |
84,000 |
||||
Total units |
100,000 |
||||
Units accounted for |
|||||
Work in process, beginning |
16,000 |
||||
Material 1 (0%1) |
–0– |
||||
Material 2 (100%2) |
16,000 |
||||
Conversion (85%3) |
13,600 |
||||
Started &Completed |
64,000 |
64,000 |
64,000 |
64,000 |
|
Work In process, ending |
20,000 |
||||
Material 1 (100%) |
20,000 |
||||
Material 2 (100%4) |
20,000 |
||||
Conversion (95%) |
19,000 |
||||
Total equivalent units |
100,000 |
84,000 |
100,000 |
96,600 |
(b) Cost per equivalent unit |
TOTAL |
||||
Material 1 |
Material 2 |
Conversion Costs |
|||
Production costs for May |
|||||
Costs incurred for May |
$280,800 |
$228,400 |
$7,000 |
$45,400 |
|
Equivalent units (from (a)) |
84,000 |
100,000 |
96,600 |
||
Cost per equivalent unit |
$3.26 |
$2.72 |
$0.07 |
$0.47 |
1Material is 100% complete, 0% to be added
2Material is 0% complete, needs 100% to be added
3Conversion is 15% complete, 85% to be added
4Material 2 is added to the process at 90% completion
Points 100 Submitting an external tool Available Sep 14 at 12am - Oct 10 at 11:59pm...
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