Jackson Inc. had the following production and cost information for its fabricati
ID: 2406399 • Letter: J
Question
Jackson Inc. had the following production and cost information for its fabrication department during the month of March (materials are added at the beginning of the fabrication process):
Jackson uses the weighted average method.
Required:
1. Prepare an equivalent units schedule. Enter percentages as whole numbers (i.e. 55 not .55).
2. Calculate the total unit cost. Round all intermediate calculations and final answer to the nearest cent.
3. Calculate the cost of units transferred out and the cost of EWIP. In your computations, round unit costs to the nearest cent and use in subsequent calculations. Round your final answers to the nearest dollar.
Production: Units in process, March 1, 50% complete with respect to conversion 5,000 Units completed 32,600 Units in process, March 30, 60% complete 6,000 Costs: Work in process, March 1: Materials $20,000 Conversion costs 15,100 Total $35,100 Current costs: Materials $62,500 Conversion costs 105,000 Total $167,500Explanation / Answer
Answers
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
[A]
[B]
[A x B]
[C]
[A x C]
Transferred
32600
100%
32600
100%
32600
Closing WIP
6000
100%
6000
60%
3600
Total
38600
Total
38,600
Total
36,200
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Beginning WIP Inventory Cost
$ 20,000.00
$ 15,100.00
$ 35,100.00
Cost incurred during period
$ 62,500.00
$ 105,000.00
$ 167,500.00
Total Cost to be accounted for
$ 82,500.00
$ 120,100.00
$ 202,600.00
Total Equivalent Units
38600
36200
Cost per Equivalent Units
$ 2.14
$ 3.32
$ 5.46 [2.14 + 3.32]
Total Cost per unit = $ 5.46
Cost of Units Transferred = 32,600 units x $ 5.46 = $ 177,996
Cost of EWIP:
(6000 units for material x $ 2.14) + (3,600 units for conversion x $ 3.32) = 12840 + 11952 = $ 24,792
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
[A]
[B]
[A x B]
[C]
[A x C]
Transferred
32600
100%
32600
100%
32600
Closing WIP
6000
100%
6000
60%
3600
Total
38600
Total
38,600
Total
36,200
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.