3.) The Mixing Department of Best Foods had 52,000 units to account for in Octob
ID: 2371619 • Letter: 3
Question
3.) The Mixing Department of Best Foods had 52,000 units to account for in October. Of the 52,000 units, 26,000 units were completed and transferred to the next department, and 26,000 units were 25% complete. All of the materials are added at the beginning of the process. Conversion costs are added equally throughout the filtration process.
requirement:
R1.) compute the total equivalent units of direct materials and conversion costs for October
4.) Refer to the data in question 3 and look at your results for equivalent units. The Mixing Department of Best Foods has direct materials cost of $44,000 and conversaion costs of 18,100 for october.
Requirement:
R1) compute the cost per equivalent unit for direct materials and for conversion costs.
5.) Refer to exercises 3 and 4. Use Best Food's costs per equivalent units and for direct materials and conversion costs that you calculated in round 4.
Requirement:
R1)calculate the cost of the 26,000 units completed and transferred out and the 26,000 units, 25% complete, in the ending work in process inventory
Explanation / Answer
(3) Equivalent Units (October):-
Direct Material
Conversion Cost
Units Introduced & completed during the month
26000
26000
(+) Ending WIP
(26000 * 100%)
=26000
(26000 * 25%)
=6500
Equivalent Units
52000
32500
(4) Cost per Equivalent Unit:-
Direct Material
Conversion Cost
Cost during the month
44000
18100
Equivalent Units
52000
32500
Cost per Equivalent unit
(44000/52000)
=0.846
(18100/32500)
=0.5569
(5) Cost of completed units & Ending WIP:-
Completed Units
(26000 units)
Ending WIP
(25% complete)
Direct Material
(26000 * 0.846)
=22000
(26000 * 0.846)
=22000
Conversion cost
(26000 * 0.5569)
=14480
(26000 * 25% * 0.5569)
=3620
Total Cost
36480
25620
Direct Material
Conversion Cost
Units Introduced & completed during the month
26000
26000
(+) Ending WIP
(26000 * 100%)
=26000
(26000 * 25%)
=6500
Equivalent Units
52000
32500
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