Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Spoiled units generally constitute 3% of the good units. Data for December 2017 are as follows:
WIP, beginning inventory 12/1/2017 22,700 units
Direct materials (100% complete)
Conversion costs (80% complete)
Started during December 76,300 units
Completed and transferred out 12/31/2017 72,100 units
WIP, ending inventory 12/31/2017 18,100 units
Direct materials (100% complete)
Conversion costs (60% complete)
Costs for December:
WIP, beginning Inventory:
Direct materials $151,000
Conversion costs 76,900
Direct materials added 231,400
Conversion costs added 294,000
What is the total cost per equivalent unit using the weighted-average method of process costing? (Round any cost per unit calculations to the nearest cent.)
| A. |
$3.69 |
|
| B. |
$4.04 |
|
| C. |
$7.90 |
|
| D. |
$3.86 |
Equivalent unit of material = 80900+18100 = 99000
Equivalent unit of conversion =80900+(18100*60%) = 91760
Cost per equivalent unit of material = (151000+231400)/99000 = 3.86
Cost per equivalent unit of conversion = (76900+294000)/91760 = 4.04
Total cost per equivalent unit = 4.04+3.86 = $7.90
So answer is c) $7.90
Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation...
1.Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Spoiled units generally constitute 4% of the good units. Data for December 2017 are as follows: WIP, beginning inventory 12/1/2017 22,000 units Direct materials (100% complete) Conversion costs (70% complete)...
Verer Custom Carpentry manufactures chairs in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to undetectable material defects. Spoiled units generally constitute 4% of the good units. Data provided for March 2017 are as follows: WIP, beginning inventory 3/1/2017...
Apco manufactures desk organizers in its Processing Department. Direct materials are included at the start of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units reach 80% of the production. Normal spoiled units generally constitute 1% of the good units (units that pass inspection point). Data provided for March 2020 are as follows: Apco uses FIFO method. WIP, beginning inventory 65,000 units...
Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some fillets are spoiled due to undetectable defects. Inspection occurs when units are 40%converted. Spoiled fillets generally constitute 4% of the good fillets. Data for April 2017 are as follows: WIP, beginning inventory...
Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some fillets are spoiled due to undetectable defects. Inspection occurs when units are 40% converted. Spoiled fillets generally constitute 6% of the good fillets. Data for April 2017 are as follows: WIP, beginning...
A department uses the FIFO method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month. 181 units in beginning WIP (72% complete with respect to conversion costs). 11,682 units started 200 units in ending WIP (43% complete with respect to conversion costs). $2,302 beginning WIP direct materials costs $2,335 beginning WIP conversion costs $89,617 current month direct materials costs $90,347 current month conversion costs What is...
A department uses the weighted average method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month. 170 units in beginning WIP (66% complete with respect to conversion costs). 10,089 units started 102 units in ending WIP (64% complete with respect to conversion costs). $2,200 beginning WIP direct materials costs $2,218 beginning WIP conversion costs $97,006 current month direct materials costs $106,810 current month conversion costs What...
A department uses the weighted average method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month. 189 units in beginning WIP (30% complete with respect to conversion costs). 10,323 units started 214 units in ending WIP (46% complete with respect to conversion costs). $2,145 beginning WIP direct materials costs $1,493 beginning WIP conversion costs $85,029 current month direct materials costs $85,642 current month conversion costs What...
A department uses the weighted average method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month. 117 units in beginning WIP (44% complete with respect to conversion costs). 9,169 units started 215 units in ending WIP (31% complete with respect to conversion costs). $1,561 beginning WIP direct materials costs $1,097 beginning WIP conversion costs $89,169 current month direct materials costs $102,511 current month conversion costs What...
A department uses the weighted average method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month. 217 units in beginning WIP (66% complete with respect to conversion costs). 8,676 units started 157 units in ending WIP (48% complete with respect to conversion costs). $2,190 beginning WIP direct materials costs $2,259 beginning WIP conversion costs $104,848 current month direct materials costs $94,798 current month conversion costs What...