Question

Kramer Corp. began the current period with 4,090 units in process that were 100% complete as to materials and 60% complete as to conversion. Costs of $7,670 in direct materials and $4,770 in conversion costs were incurred in manufacturing those units in the previous period. Kramer ended the current period with 21,200 units completed and 5,070 units still in process. Work in process was 100% complete as to materials and 70% complete as to conversion costs. Kramer incurred $68,100 in direct materials costs, $7,080 in direct labor costs, and $41,300 in manufacturing overhead costs during the period. Required: a. Using the weighted average method, compute the equivalent units of production for materials. Equivalent Units b. Using the weighted average method, compute the equivalent units of production for conversion Equivalent Units

Answer 1

a) Equivalent unit of material = 21200+(5070*100%) = 26270

b) Equivalent unit of conversion = 21200+(5070*70%) = 24749

c) Cost per equivalent unit of material = (7670+68100)/26270 = 2.88

d) Cost per equivalent unit of conversion = (4770+7080+41300)/24749 = 2.15

e) Cost of ending WIP = (5070*2.88+3549*2.15) = $22232

f) Cost of goods completed = (2.88+2.15)*21200 = 106636