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Grand River Company produces a high-quality insulation material that passes thro

ID: 2461371 • Letter: G

Question

Grand River Company produces a high-quality insulation material that passes through two production processes. Data for November for the first process follow:

Units

Completion with Respect to Materials

Completion with Respect to Conversion

WIP Nov 1

80000

50%

25%

WIP Nov 30

60000

45%

20%

Material Cost in WIP

Inventory, June 1

$76,600

Conversion Cost in WIP

Inventory, June 1

$34,900

Units started into production

$300,000

Units transferred to next process

$320,000

Material cost added during June

$410,000

Conversion cost added during June

$234,500

1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for November for the first process.

2. Compute the costs per equivalent unit for November for the first process.

3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in November.

Units

Completion with Respect to Materials

Completion with Respect to Conversion

WIP Nov 1

80000

50%

25%

WIP Nov 30

60000

45%

20%

Explanation / Answer

Statement Showing Equivalant Units-

Unit Unit Begning Units 80000 Unit Completted 320000 Unit Introduced 300000 Ending WIP UNIT 60000 Total unit 380000 Total unit 380000