Pearl Company has the following production information for October: 60,000 units
ID: 2382159 • Letter: P
Question
Pearl Company has the following production information for October: 60,000 units transferred out and 20,000 units in ending work in process that are 100 percent complete for materials and 60 percent complete for conversion costs. Materials cost is $12 per equivalent unit and conversion cost is $16 per equivalent unit.
Determine the cost assigned to the units transferred out and the units in ending work in process using the weighted-average method.
Pearl Company has the following production information for October: 60,000 units transferred out and 20,000 units in ending work in process that are 100 percent complete for materials and 60 percent complete for conversion costs. Materials cost is $12 per equivalent unit and conversion cost is $16 per equivalent unit.
Pearl Company has the following production information for October: 60,000 units transferred out and 20,000 units in ending work in process that are 100 percent complete for materials and 60 percent complete for conversion costs. Materials cost is $12 per equivalent unit and conversion cost is $16 per equivalent unit. Determine the cost assigned to the units transferred out and the units in ending work in process using the weighted-average method.Explanation / Answer
Units Completed & Transferred Out
Direct Materials= 60,000*12 = 720,000
conversion = 60,000*16 = 960,000
total = 720,000 + 960,000 = 1680,000
ending inventory
Direct Materials= 20,000*12 = 240,000
conversion = 20,000*16*0.6 = 192,000
total = 240,000 + 192000 = 432,000
total cost accounted for
direct materials = 720,000+240,000 = 960,000
conversion = 960,000+192000 = 1152,000
total = 2112,000
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