The Assembly Department of Nitz Company uses a process cost accounting system an

Question

The Assembly Department of Nitz Company uses a process cost accounting system and weighted-average cost How assumption The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During May, the department incurred the following costs which includes beginning work-in process: Direct materials Conversion costs dollar 90,000 dollar 135.000 Other data for the month of May arc as follows: Beginning work in process inventory, 5/1 Units started into production Units completed and transferred out Ending work in process inventory, 5/31 10,000 units (25 percent complete) 20,000 units 25,000 units 5.000 units (40 percent complete) Instructions: Answer the following questions and SHOW computations to support your answers. How many physical units have to be accounted for in the month of May?: What arc the Equivalent Units of production for: Materials Conversion What are the l alt Costs for: Materials Conversion Costs Total What is the total cost assigned to the 25,000 units that were transferred out of process: What is the total cost of the ending inventory:

Explanation / Answer

Physical units DM conversion Beg WIP 10000 units trnanfered in 20000 total units 30000 units completed and transferred out 25000 25000 25000 Ending WIP 5000 Equivalent units-40% 2000 2000 total units 30000 27000 27000 DM CC TC Cost during may including WIP 90000 135000 225000 Equivalent units 27000 27000 54000 Cost per Equivalent units                    3.33      5.00               8.33 Cost accounted for cost fo goods completed and trnfered out 25000*8.33 208250 Cost of ending WIP DM 2000*3.33 6660 Conversion cost 2000*3.75 7500

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