Crooked Creek Wines has provided the following information about their recent vi

Question

Crooked Creek Wines has provided the following information about their recent vintage of Shiraz. Equivalent Units Physical units Direct Materials Conversion Costs WIP, beginning Started in current period Completed and transferred 7,500 27,365 31,547 out WIP, ending 3,318 Degree of Degree of completion-95% completion-45% Total costs for current period WIP, beginning Direct materials $67,736.17 $11,642.98 Conversion Costs Direct materials added during current period Conversion Costs added during current period Total costs to account for $305,089.24 Required $163,012.85 $62,697.25 1. Calculate the cost per equivalent unit for direct materials and conversion costs 2. Summarise the total costs to account for, and assign them to units completed (and transferred out) and to units in ending inventory.

Explanation / Answer

1)

67736.17+163012.85

230749.02

62697.25+11642.98

74340.23

230749.02/34699.1

=$ 6.65

74340.23/33040.1

=$ 2.25

2)

24320.95

Direct material conversion cost Units completed and transfered out 31547 31547 ENding WIP 3152.1      [3318*.95] 1493.1     [3318*.45] Equivalent unit 34699.1 33040.1 Total Cost incurred Till date

67736.17+163012.85

230749.02

62697.25+11642.98

74340.23

cost per equivalent unit

230749.02/34699.1

=$ 6.65

74340.23/33040.1

=$ 2.25

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