Pacific link had beginning work in process inventory of $368,300 on october 1 of

Question

Pacific link had beginning work in process inventory of $368,300 on october 1 of this amount. $ 147,600 was the cost of direct materials and $220,700 was the cost of conversion. The 23,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs. During October 53,000 units were transferred out and 18,000 remainded in ending inventory. The units in ending inventory were 70 percent complete with respect to direct materials and $1,510,720 for conversion. Required: Compute the cost per equivalent unit for direct materials and for conversion costs using the weighted average method.

Explanation / Answer

Cost per Equivalent unit $ Material 20.20 Conversion cost 27.93 Working Cost of Prduction report Equivalent Units Flow Of Units Physical Units Direct Material Conversion Cost Units to be accounted for Beginning work in process inventory 23000 Units started this period 48000 Total u nits to be accounted for    71000 Units accounnted for: Completed and transferred out (b) 53000 53000 53000 Ending work in progress inventory© 18000 12600 9000 Total units to be accounted for (f)      71000 65600 62000 Flow of Cost Cost in the begnning work in progress inventory 368300 147600 220700 Cost added in current period 2688520 1177800 1510720 Total Cost to be accounted for (e)     3056820 1325400 1731420 Cost per equivalent unit (a)    (e/f) 48.13 20.20 27.93 Cost accounted for Cost assigned to units transferred out (a*b) 2550911.058 1070826.22 1480084.84 Cost in ending work in progress inventory (a*c)     505908.9418 254573.78 251335.16 Total Cost accounted for    3056820.00 1325400.00 1731420.00

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.