Question

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day: Beginning WIP inventory Direct materials $ 992 Conversion costs 407 Current period costs Direct materials 18,540 Conversion costs 10,538 Quantity information is obtained from the manufacturing records and includes the following: Beginning inventory 900 units (60% complete as to materials, 55% complete as to conversion) 4,900 units 1,100 units (40% complete as to materials, Current period units started Ending inventory 25% complete as to conversion)

Please also provide explanation of you you got the numbers. thanks!

Answer 1

Answer

• Requirement 1

Equivalent units for:
materials = 5140
conversion cost = 4975

[You entered correct amounts but in the wrong columns]

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED [900 + 4900 – 1100]	4,700	100%	4,700	100%	4,700
Units of ENDING WIP	1,100	40%	440	25%	275
Equivalent Units of Production			5,140		4,975

• Requirement 2

Cost per equivalent unit:
material = $ 3.80
conversion cost = $ 2.20

COST per EUP			Material		Conversion
Cost of Beginning WIP			$                992.00		$                                        407.00
Cost incurred during the period			$          18,540.00		$                                  10,538.00
Total Costs		Costs	$          19,532.00	Costs	$                                  10,945.00
Equivalent units of production		EUP	5,140	EUP	4,975
Cost per EUP			$              3.80000		$                                      2.20000