Spartan’s Auto Parts manufactures car seats. The firm has identified two cost categories: direct materials and conversion costs. Each car seat goes first through the Assembly Department, where materials are added, then passes through the Quality Inspection Department. All direct materials are added at the beginning of production but conversion costs are allocated evenly throughout production. Data for Department A for June 2020 are: Beginning WiP Inventory 250 units Direct materials (100% complete) Conversion costs (40% complete) Units started during February 475 units Ending WiP Iinventory June 30 320 units Direct materials (100% complete) Conversion costs (70% complete) What were the equivalent units of direct materials and conversion costs, respectively, at the end of June if Spartan's uses the weighted-average process costing method.
Computation of Equivalent units of Direct Materials and Conversion Costs: | |||
Units | Materials | Conversion Costs | |
Beginning WIP | 250 | ||
Units Started | 475 | ||
Ending WIP | 320 | ||
Units Completed (250+475-320) | 405 | ||
Equivalent Units: | |||
Units Completed (405*100%) | 405 | 405 | |
Ending WIP: | |||
Materials (320*100%) | 320 | ||
Conversion Costs (320*70%) | 224 | ||
Equivalent Units of Producton | 725 | 629 |
Spartan’s Auto Parts manufactures car seats. The firm has identified two cost categories: direct materials and...
Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for February 2017 are: WIP, beginning inventory, 40% completed 200 units Units started during February 1000 units WIP, ending inventory, 50% completed 240 units Costs for Department A for...
Charlie Chairs Inc., manufactures plastic moldings for car
seats. Its costing system utilizes two cost categories, direct
materials and conversion costs. Each product must pass through
Department A and Department B. Direct materials are added at the
beginning of production. Conversion costs are allocated evenly
throughout production.
320 units 840 units 220 units Data for Department A for February 2017 are: Work in process, beginning inventory, 35% converted Units started during February Work in process, ending inventory Costs for Department...
Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for February 2017 are: Work in process, beginning inventory, 4040% converted 250 units Units started during February 960 units Work in process, ending inventory 140 units Costs for Department...
Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for February 2017 are: Work in process, beginning inventory, 45% converted 520 units Units started during February 880 units Work in process, ending inventory 140 units Costs for Department...
8.
Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for February 2017 are: Work in process, beginning inventory, 40% converted 260 units Units started during February 980 units Work in process, ending inventory 200 units Costs for...
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33.
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Direct Materials is 100%
36 Weighted average method. Hoffman Company manufactures car seats in its Boise plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Hoffman Company has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly de- partment finishes...
17-41 WEIGHTED-AVERAGE METHOD. Hoffman Company manufactures car
seats in its Boise plant. Each car seat passes through the assembly
department and the testing department. This problem focuses on the
assembly department. The process-costing system at Hoffman Company
has a single direct-cost category (direct materials) and a single
indirect-cost category (conversion costs). Direct materials are
added at the beginning of the process. Conversion costs are added
evenly during the process. When the assembly department finishes
work on each car seat, it...