Question

Exercise B3, 0-30, 0-39 & 0-40 SU U -2, , 5) (The following information applies to the questions displayed below Pacific Ink had beginning work-in-process inventory of $744,960 on October 1 of this amount, $304,920 was the cost of direct materials and $440,040 was the cost of conversion. The 48.000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs During October 102.000 units were transferred out and 30.000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $2.343.600 for rrect materials and $3.027,840 for conversion Exercise B-37 (Static) Compute Costs per Equivalent Unit: Weighted Average Method (LO 8-3) Required: Compute the equivalent units for the materials and conversion cost calculations 5. Compute the cost per equivalent unit for direct materials and for conversion costs using the weighted average method Complete this question by entering your answers in the tabs below. Required A Required B Compute the equivalent units for the materials and conversion cost calculations Equivalent unts for materials Eguralant unes for conversion costs

Answer 1

a.
		Equivalent Units
	Physical Units	Direct materials	Conversion
Units completed	102000	102000	102000
Ending inventory ( Physical units * % Completion )	30000	24000 [ 30000*80% ]	12000 [ 30000*40% ]
Total units	132000	126000	114000

b.
	Direct materials	Conversion
Work in process, October 1	304920	440040
Cost incurred during October	2343600	3027840
Total cost	2648520	3467880
(/) Equivalent units	126000	114000
Cost per equivalent unit	21.02	30.42