Question

Required information The following information applies to the questions displayed below) During April, the first production department of a process manufacturing system completed its work on 385,000 units of a product and transferred them to the next department of these transferred units, 77000 were in process in the production department at the beginning of April and 308.000 were started and completed in April April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 99,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion The production department had $1,332,034 of direct materials and $915.420 of conversion costs charged to it during April. Also, its April beginning inventory of $225,016 consists of $185,086 of direct materials cost and $39.930 of conversion costs 1. Compute the direct materials cost per equivalent unit for April (Round "Cost per Eup to 2 decimal places.) 2. Compute the conversion cost per equivalent unit for April (Round "Cost per EUp to 2 decimal places.) 3. Using the weighted average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory (Round "Cost per EUP" to 2 decimal places.)

pt.1

pt 2.

pt3.

Answer 1

Answer is given below

Equivalent Units of Production - Weighted Average Method Equivalent Units- Weighted Average EUP EUP % Conversion Units % Materials Materials Conversion Units Completed during Period: From Beginning WIP in Inventory Units started and completed during Period Total units completed during period Units in Ending WIP Inventory 77,000 308,000 385,000 385,000 100% 385,000 100% 89,100 99,000 90% 40% 39,600 Total Units To Account for 484,000 424,600 474,100 Equivalent Units of production Materials Conversion Cost from Beginning WIP Inventory Current Period Costs Total cost $185,086 $1,332,034 $39,930 $915,420 $1,517,120 Costs $955,350 Costs 474,100 EUP $3.20 Equivalent units of production |Cost per equivalent unit of production 424,600 EUP $2.25 In Average cost method Total cost of Opening Work in process and current period cost is divided by equivalent units Total Costs to Account for Opening WIP Direct Material $225,016 $1,332,034 $915,420 $2,472,470 Conversion Cost Total Cost to Account for Total costs accounted for $2,472,470 Cost Assignment and reconciliation Cost of Unit transferred out Cost per EUP $3.20 Total Cost EUP 385,000 Direct Material $1,232,000 $866,250 $2,098,250 Conversion $2.25 385,000 Total cost transferred out Costs of ending work in process Cost per EUP Total Cost EUP $285,120 $89,100 $374,220 Direct Material Conversion Total cost of ending Work in process Total Costs accounted for $3.20 89,100 $2.25 39,600 $2,472,470 In Average Cost method Beginning WIP inventory is not valued separately Cost is averaged out and added to units started and completed during the period Equivalent Units of Production - FIFO Method Equivalent Units- FIFO EUP EUP % Conversion % Materials Units Conversion Materials Units Completed during Period: From Beginning WIP in Inventory Units started and completed during Period Total units completed during period Units in Ending WIP Inventory 30% 70% 77,000 23,100 53,900 308,000 100% 100% 308,000 308,000 385,000 89,100 90% 40% 99,000 39,600 Total Units To Account for 484,000 420,200 Equivalent Units of production 401,500 Materials Conversion $915,420 $915,420 Current Period Costs Total cost $1,332,034 $1,332,034 Costs Costs Equivalent units of production EUP 420,200 EUP 401,500 Cost per equivalent unit of production $3.17 $2.28 Total Costs to Account for Opening WIP Direct Material Conversion Cost $225,016 $1,332,034 $915,420 $2,472,470 Total Cost to Account for $2,472,470 Total costs accounted for Cost Assignment and reconciliation Cost of Unit transferred out Cost of 77,000 Units from Beginning Inventory Beginning Inventory $225,016 Cost per EUP $3.17 EUP Total Cost Material to complete $73,227.00 23,100 Conversion to complete Total costs to complete Total Cost of 77,000 units in Beginning Inventory Costs of Units started and completed this period Direct Material Conversion 53,900 $2.28 $122,892.00 $196,119 $421,135 308,000 308,000 $976,360 $702,240 $3.17 $2.28 Total cost of 308,000 units started and completed Total cost of 385,000 units transferred out Cost of Units in Ending inventory Direct Material $1,678,600 $2,099,735 Total Cost EUP Cost per EUP 89,100 39,600 $3.17 $282,447 $90,288 $2.28 Conversion Total cost of 99,000 in Ending inventory Total Cost assigned $372,735 $2,472,470