Federer Products Inc. manufactures a caulking compound that goes through three p
ID: 2420195 • Letter: F
Question
Federer Products Inc. manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May:
Production Data:
Pounds in process, May 1; materials 100% complete; conversion 80% complete
15,000
Pounds started into production during May
150,000
Pounds completed and transferred out
?
Pounds in process, May 31; materials 60% complete; conversion 20% complete
22,500
Cost data:
Work in process inventory, May 1:
Materials cost
2,250
Conversion cost
10,800
Cost added during May:
Materials cost
231,750
Conversion cost
136,200
The company uses the weighted-average method.
Required:
1- Compute the equivalent units of production
2- Compute the costs per equivalent unit for the month.
3- Determine the cost of ending work in process inventory and of the units transferred out to the next department.
Production Data:
Pounds in process, May 1; materials 100% complete; conversion 80% complete
15,000
Pounds started into production during May
150,000
Pounds completed and transferred out
?
Pounds in process, May 31; materials 60% complete; conversion 20% complete
22,500
Cost data:
Work in process inventory, May 1:
Materials cost
2,250
Conversion cost
10,800
Cost added during May:
Materials cost
231,750
Conversion cost
136,200
Explanation / Answer
Solution:
Transferred In Transferred Out Beginning 15,000 Transferred Out 142,500 Started 150,000 Ending 22,500 Total 165,000 Total 165,000Related Questions
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