Federer Products Inc. manufactures a caulking compound that goes through three p
ID: 2420675 • 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
Federer Products Inc. Details Pounds % Material Equivalent pounds Material % Conversion Equivalent pounds Conversion Opening WIP May 1. 15,000 100 15,000 80% 12,000 Started into Production May 150,000 141,000 135,000 Total 165,000 156,000 147,000 Output Completed & Transferred out 142,500 100% 142,500 100% 142,500 Cloing WIP May 31. 22,500 60% 13,500 20% 4,500 Total 165,000 156,000 147,000 Total Cost May Details Material Cost Conversion Cost Total Opening WIP May 1. 2,250 10,800 13,050 Incurred in May 231,750 136,200 367,950 Total Cost 234,000 147,000 381,000 Details of Prodcution Equivalent pounds Material Equivalent pounds Conversion Total 1 Equivalent units of production 156,000 147,000 303,000 Total Cost 234,000 147,000 381,000 2 Cost Per Pound of Equivalent Prodcution 1.50 1.00 1.257 3 Cost of Ending WIP Details of Prodcution Equivalent pounds Material Equivalent pounds Conversion Total Equivalent units of production 13,500 4,500 18,000 Total Cost 20,250 4,500 24,750 Cost of pounds Transferred out Details of Prodcution Equivalent pounds Material Equivalent pounds Conversion Total Equivalent units of production 142,500 142,500 285,000 Total Cost 213,750 142,500 356,250
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