Beginning Work in Process Ending Work in Process Month Units Conversion Cost% Un
ID: 2424603 • Letter: B
Question
Beginning Work in Process
Ending Work in Process
Month
Units
Conversion Cost%
Units Transferred Out
Units
Conversion Cost%
Instructions
Compute the physical units for January and May.
(b)
Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.
PLEASE ANSWER ALL QUESTIONS
In Wayne Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2014 are as follows.Beginning Work in Process
Ending Work in Process
Month
Units
Conversion Cost%
Units Transferred Out
Units
Conversion Cost%
January -0- — 9,000 2,000 60 March -0- — 12,000 3,000 30 May -0- — 16,000 7,000 80 July -0- — 10,000 1,500 40Instructions
(a)Compute the physical units for January and May.
(b)
Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.
PLEASE ANSWER ALL QUESTIONS
Explanation / Answer
(a) Computation of phisical units for
January = 9000 + 2000 = 11000
May = 16000 + 7000 = 23000
(b) (1) Equivalent units for material for
January = 9000 + 2000 = 11000
March = 12000 + 3000 = 15000
May = 16000 + 7000= 23000
July = 10000 + 1500= 11500
(2) Equivalent units for conversion cost for
January = 9000 + 2000 x 60% = 10200
March = 12000 + 3000 x 30% = 12900
May = 16000 + 7000 x 80% = 21600
July = 10000 + 1500 x 40% = 10600
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