Question

rk Savcd The following information applies to the questions displayed below The Matsul Lubricants plant uses the welghted-average method to account for its work-In-process Inventorles accounting records show the following Information for a particular day Beginning NIP inventory Direct materials Conversion costs $ $86 572 Current period costs Direct materials Conversion costs 28,660 17,809 Quantity Information is obtained from the manufacturing records and includes the following RegInning invertory 850 units (70% complete as to naterials, $4% conplete as to comversion) Current period units started tnding inventory 6,000 units 1,6 units (5e% conplete as to natertats 20 complete as to conversion Exercise 8-33 (Algo) Compute Costs per Equlvelent Unit: Welghted-Average Method (LO 8-3) Required a. Compute the squivalent units for the materes and conversion.cost calculatons b. Comoute the cost per equlvaient unit for dtrect matenas and converston costs Complete this question by entering your answers in the tabs below. Rquire Compute the equlvalent units for the materals and conversion coat calou ations E nfor mare Pre

Answer 1

Solution a:

Matsul Lubricants Computation of Equivalent units
Particulars	Physical Units	Equivalent units
		Material	Conversion
Work in Process, beginning	850
Started during the current period	6000
Total units to account for	6850
Units accounted for:
Unit completed & Transferred out	5250	5250	5250
Closing WIP:	1600
Material (50%)		800
Conversion (20%)			320
Equivalent units of production	6850	6050	5570

Solution b:

Matsul Lubricants Computation of Cost per equivalent unit of Production
Particulars	Material	Conversion
Opening WIP	$985.00	$572.00
Cost Added during Period	$28,660.00	$17,809.00
Total cost to be accounted for	$29,645.00	$18,381.00
Equivalent units of production	6050	5570
Cost per Equivalent unit	$4.90	$3.30