Firenze, Inc., manufactures a product that goes through two departments prior to

Question

Firenze, Inc., manufactures a product that goes through two departments prior to completion-the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June Percent Completed Units Materials Conversion 70% 40% Work in process, beginning Started into production Completed and transferred out Work in process 96,000 460,500 450,500 106,000 , ending 75% 25% Work in process, beginning Cost added during June MaterialsConversion $ 38,900$ 14,100 $ 416,900 $ 300,720 Required Assume that the company uses the weighted-average method 1. Determine the equivalent units of production for June for the Mixing Department. Materials Conversion Equivalent units of production 2. Compute the costs per equivalent unit for June for the Mixing Department. (Round your answers to 2 decimal places.) Materials Conversion Co st per equivalent unit

Explanation / Answer

1) Equivalent units of production % % units materials materials CC Conversion Completed and transferred out 450,500 100% 450500 100% 450500 Work in process,ending 106,000 75% 79500 25% 26500 Equivalent units of production 556,500 530000 477000 Materials Conversion Equivalent units of production 530000 477000 2) Cost per equivalent units Materials CC total beginning work in process 38,900 14,100 53,000 cost added during the year 416,900 300,720 717,620 total cost 455,800 314,820 770,620 Equivalent units 530000 477000 cost per equivalent units 0.86 0.66 1.52 Materials Conversion cost per equivalent unit 0.86 0.66 3) Cost of ending work in process inventory (79500*.86+26500*.66)= 85860 Cost of units completed and transferred out (450500*1.52) 684760 4) cost Reconciliation Cost to   be accounted for beginning work in process 53,000 cost added during the year 717,620 total cost to be accounted for 770,620 costs accounted for as follows: cost of units completed & transferred out 684760 cost of ending work in process inventory 85860 total cost accounted for 770620

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