1. Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May:
Percent Completed | |||||
Tons of Pulp | Materials | Conversion | |||
Work-in-Process Inventory, May 1 | 4,000 | 100 | % | 50 | % |
Started during May | 15,000 | ||||
Units to account for | 19,000 | ||||
Units from beginning Work-in-Process, which | 4,000 | ||||
Started and completed during May | 9,000 | ||||
Work-in-Process Inventory, May 31 | 6,000 | 100 | % | 50 | % |
Total units accounted for | 19,000 | ||||
The following cost data are available:
Work-in-Process Inventory, May 1 | |||
Direct materials | $ | 52,060 | |
Conversion | 19,200 | ||
Costs incurred during May | |||
Direct materials | 236,550 | ||
Conversion | 392,000 | ||
Required:
1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method.
2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.
1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method.
Direct materials= 19,000
Conversion= 16,000 **4000+9000+3000
2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.
(52,060+236,550)/ 19000= 15.19
(19,200+ 392,000)/ 16,000= 25.70
URGENT in two hours. Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May: Percent Completed Tons of Pulp Materials Conversion Work-in-Process Inventory, May 1 4,000 100 % 50 % Started during May 15,000 Units to account for 19,000 Units...
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May: Percent Completed Tons of Pulp Materials Conversion Work-in-Process Inventory, May 1 4,000 100 % 50 % Started during May 15,000 Units to account for 19,000 Units from beginning Work-in-Process, which...
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May: Percent Completed Tons of Pulp Materials Conversion Work-in-Process Inventory, May 1 5,000 100 % 50 % Started during May 12,000 Units to account for 17,000 Units from beginning Work-in-Process, which...
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May: Percentage Completed Tons of Pulp Materials Conversion Work-In-Process Inventory, May 1 4,000 100% 50% Started during May 12,000 Units to account for 16,000 Units from beginning Work-In-Process, which were completed...
Problem 6-37 Weighted Average Method [LO 6-2, 6-4] Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company's production schedule for May: Percent Completed Tons of Pulp 5,000 12,000 17,000 Materials 100% Conversion 50% Work-in-Process Inventory, May 1 Started during May Units to account...
URGENT in two hours. Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May: Percent Completed Tons of Pulp Materials Conversion Work-in-Process Inventory, May 1 4,000 100 % 50 % Started during May 12,000 Units to account for 16,000 Units...
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May: Percent Completed Tons of Pulp Materials Conversion Work-in-Process Inventory, May 1 2,000 100 % 50 % Started during May 11,000 Units to account for 13,000 Units from beginning Work-in-Process, which...
: Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are : incurred uniformly throughout the process. This is the company's production schedule for May: Percent Completed Tons of Pulp 2,000 12,000 14,000 Materials 100% Conversion 50% Work-in-Process Inventory, May 1 Started during May Units to account for Units from beginning Work-in-process, which...
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May: Percent Completed Tons of Pulp Materials Conversion Work-in-Process Inventory, May 1 5,000 100 % 50 % Started during May 16,000 Units to account for 21,000 Units from beginning Work-in-Process, which...
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May: Percent Completed Tons of Pulp Materials Conversion Work-in-Process Inventory, May 1 5,000 100 % 50 % Started during May 18,000 Units to account for 23,000 Units from beginning Work-in-Process, which...