Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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 production

Explanation / 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

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote