Question

Pablo Company calculates the cost for an equivalent unit of production using process costing. $ 48,000 19,200 $ 67,200 56,800 56,800 24,000 Data for June Work-in-process inventory, June 1: 24,000 units Direct materials: 100% complete Conversion: 40% complete Balance in work-in-process, June 1 Units started during June Units completed and transferred out Work-in-process inventory, June 30 Direct materials: 100% complete Conversion: 80% complete Costs incurred during June Direct materials Conversion costs Direct labor Applied overhead Total conversion costs $176,080 176,080 221,520 $397,600 Required: 1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods. (Round your answers to 3 decimal places.) Weighted Average Cost per EU FIFO Cost per EU Direct materials Conversion Total cost S 0.000 S 0.000

Answer 1

A B D E F Weighted Average 1 cost per EU FIFO cost per EU 2 Direct materials $ 2.773 $ 3.100 3 Conversion $ 5.484 $ 5.988 4 Total cost $ 8.257 $ 9.088 5 Working Note: 6 Equivalent units of production (EUP)- weighted average method 7 Units % Materials EUP-Materials % Conversion EUP-Conversion 8 Units completed and transferred out 56,800 100% $ 56,800 100% $ 56,800 9 Units of ending goods in process 24,000 100% $ 24,000 80% $ 19,200 10 Equivalent units of production $ 80,800 $ 76,000 11 Cost per equivalent unit of production Materials Conversion 12 Cost of beginning goods in process $ 48,000 $ 19,200 13 Costs incurred this period $ 176,080 $ 397,600 14 Total costs Costs $ 224,080 Costs $ 416,800 15 = Equivalent units of production EUP 80,800 EUP 76,000 16 Cost per equivalent unit of production $ 2.773 $ 5.484 17 18 FIFO: Equivalent Units 19 Whole Units Direct Materials Conversion 20 Work in process, beginning 24000 0 14400 21 Units started and completed 32800 32800 32800 22 Transferred to finished goods 56800 32800 47200 23 Work in process, ending 24000 24000 19200 24 Total equivalent units 80800 56800 66400 25 Direct Materials Conversion 26 Total costs added to production during the month $ 176,080 $ 397,600 27 Total equivalent units 56800 66400 28 Cost per equivalent unit $ 3.100$ 5.988

А B D E F Weighted Average 1 cost per EU FIFO cost per EU 2 Direct materials =+D16 =+C28 3 Conversion =+F16 =+D28 4 Total cost =+B2+B3 =+C2+C3 5 Working Note: 6 Equivalent units of production (EUP)- weighted average method 7 Units % Materials EUP-Materials % Conversion EUP-Conversion 8 Units completed and transferred out 56800 1 =+B8*C8 1 =+B8*E8 9 Units of ending goods in process 24000 1 =+B9*C9 0.8 =+B9E9 10 Equivalent units of production =+D8+D9 =+F8+F9 11 Cost per equivalent unit of production Materials Conversion 12 Cost of beginning goods in process 48000 19200 13 Costs incurred this period 176080 397600 14 Total costs Costs =+D12+D13 Costs =+F12+F13 15 = Equivalent units of production EUP =+D10 EUP =+F10 16 Cost per equivalent unit of production =+D14/D15 =+F14/F15 17 18 FIFO: Equivalent Units 19 Whole Units Direct Materials Conversion 20 Work in process, beginning 24000 =+B20*(100%-100%) =+B20*(100%-40%) 21 Units started and completed =56800-320 =+B21*100% =+B21*100% 22 Transferred to finished goods =+B20+B21 =+C20+C21 =+D20+D21 23 Work in process, ending 24000 =+B23*100% =+B23*80% 24 Total equivalent units =+B22+B23 =+C22+C23 =+D22+D23 25 Direct Materials Conversion 26 Total costs added to production during the month 176080 397600 27 Total equivalent units =+C24 =+D24 28 Cost per equivalent unit |-+C26/C27 =+D26/D27