Clonex Labs, Inc., uses a process costing system. The following data are availab
ID: 2406364 • Letter: C
Question
Clonex Labs, Inc., uses a process costing system. The following data are available for one department for October: ercent Comple Work in process, October 1 Work in process, October 31 Units Materials Conversion 48,000 85% 37,000 73% 65% 53% The department started 402,000 units into production during the month and transferred 413,000 completed units to the next department. Required Compute the equivalent units of production for October, assuming that the company uses the weighted- average method of accounting for units and costs. Materials Conversion Equivalent units of productionExplanation / Answer
Answers
Material
Conversion
Completed & Transferred
413,000
413,000
Ending WIP
27,010 [37,000 x 73%]
19,610 [37,000 x 53%]
Equivalent Units of Production
440,010
432,610
Material
Labor
Overhead
A
WIP cost
$ 39,400.00
$ 66,144.00
$ 321,129.00
B
Cost added during May
$ 238,955.00
$ 44,096.00
$ 214,086.00
C= A+B
Total cost to be accounted for
$ 278,355.00
$ 110,240.00
$ 535,215.00
D
Equivalent Units
3300
3200
3100
E = C/D
Cost per Equivalent Unit
$ 84.35
$ 34.45
$ 172.65
Cost per Equivalent Unit
Material
$ 84.35
Labor
$ 34.45
Overhead
$ 172.65
Total cost per Equivalent Unit
$ 291.45
Material
Conversion
TOTAL
A
WIP Equivalent Unit
2060
830
B
Cost per Equivalent Unit
$ 15.95
$ 7.95
C = A x B
Cost of Ending WIP Inventory
$ 32,857
$ 6,599
$ 39,456
A
Units Transferred
21600
21600
B
Cost per Equivalent Unit
$ 15.95
$ 7.95
C = A x B
Cost of Units transferred out
$ 344,520
$ 171,720
$ 516,240
Cost to be accounted for:
Beginning WIP cost
$ 4,820.00
Cost added to production
$ 25,550.00
Total cost to be accounted for
$ 30,370.00
Cost accounted for as follows:
Cost of Ending WIP
$ 1,110.00
Cost of Units transferred
$ 29,260.00
Total cost accounted for
$ 30,370.00
Material
Conversion
Completed & Transferred
413,000
413,000
Ending WIP
27,010 [37,000 x 73%]
19,610 [37,000 x 53%]
Equivalent Units of Production
440,010
432,610
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