Question

Required information (The following information applies to the questions displayed below.) During April, the first production department of a process manufacturing system completed its work on 395,000 units of a product and transferred them to the next department. Of these transferred units, 79,000 were in process in the production department at the beginning of April and 316,000 were started and completed in April. April's beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 101,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion. The production department had $1,336,480 of direct materials and $970,047 of conversion costs charged to it during April. Also, its April beginning inventory of $270,083 consists of $250,325 of direct materials cost and $19,758 of conversion costs. 1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 3. Using the weighted-average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

MON/006'dd values given in the Example Units transferred 395000 units Closing work in process → 10,000 units Percentage of completion materials 851 Conversion - 351 Cost In weighted Average Methode we do not seperate opening WIP Hom total units transferred because we assume that total units transferred are 100% complete with respect to materials and 100t. with respect conversion cost cwe assume it to be completed in current period so 100% complete in respect of both) 14 Statement of Equivalent Units. of Production to Wapred Units 3,95,000 % maturals Eup 100% 395000 % ConvCost 1007 Eup 3,95,000 Knits put in Process Closing wip Total 35.7 1,01,000 14,96,000 85,850 4,89850 35 350 4,30,350 :) Cost per Ea uwito Rod Statement of Cost Per Equivalent Unit Particulars Total Costs Eup Materiale 13,36,480$ 4,80,850 units Conversion Costs 970,047 $ 4,30,350 units 2.78$ 2.25 $ S03% Total

Total Costs 3) tcost Assignment to Repartment: Output Particulars EUR Costfer EUP Costs of Units Kansferend lout firect Materials 395000 units! 2.78$ 10,98,100$ Conversion cost 3,95.000 wita 2.25$ 8,88,750 $ Total Coststranstessed Clyes to Point (Refer to Point 19,86,850 $ out A ) Kost of ending wil Disect materials 85,850 units 2.78$ 2.38,663$ Concession cost 35,350 units 2.25$ 79,538$ (B) Total cost of ending wipirejes to Point | Myles to Point 3,18,201$ Total costs accounted; i): 23,05,057$ aj for (A+B)