The Plastic Flowerpots Company has two manufacturing departments, molding and pa

Question

The Plastic Flowerpots Company has two manufacturing departments, molding and packaging. At the beginning of the month, the molding department has 2,000 units in inventory, 70% complete as to materials. During the month, the molding department started 18,000 units. At the end of the month, the molding department had 3,000 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department.

     Cost information for the molding department for the month follows:

Using the weighted-average method, compute the molding department’s (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month. (Round "cost per equivalent unit of production" to 2 decimal places.)

Thank you

The Plastic Flowerpots Company has two manufacturing departments, molding and packaging. At the beginning of the month, the molding department has 2,000 units in inventory, 70% complete as to materials. During the month, the molding department started 18,000 units. At the end of the month, the molding department had 3,000 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department.

     Cost information for the molding department for the month follows:

Beginning work in process inventory (direct materials)
$ 1,200 Direct materials added during the month $ 27,900

Using the weighted-average method, compute the molding department’s (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month. (Round "cost per equivalent unit of production" to 2 decimal places.)

Direct Materials (a) Equivalent units of production (b) Cost per equivalent unit of production

Thank you

Explanation / Answer

Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Opening WIP                2,000.00 100%                    2,000.00 Units started and completed(18,000-3,000)              15,000.00 100%                 15,000.00 Closing WIP                3,000.00 80%                    2,400.00 Equivalent Units                 19,400.00 Beginning WIP                    1,200.00 Current Month Costs                 27,900.00 Total Costs for Equivalent Units                 29,100.00 Cost per Equivalent units                            1.50

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