The following information is available from the Oils Division of Glasgow Corpora
ID: 2567349 • Letter: T
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The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 60 percent complete as to ending work-in-process inventory. Information about conversion costs follows:
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in process inventory and 60 percent complete as to ending work-in-process inventory. Information about conversion costs follows: Conversion Units Costs WIP at December 1 (80% complete) Units started and costs incurred during December Units completed and transferred to next department during December 110,000 $ 426,800 550,000 2,572,400 10,000 The Oils Division uses FIFO Required a-1. Compute the equivalent units for conversion costs. alent units a-2. Compute the cost per equivalent unit for conversion costs. (Round your answers to 2 decimal places.) per equivalent unit a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31? (Do not round intermediate calculations.) ersion cost b. What were the conversion costs per equivalent unit produced last period and this period, respectively? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Cost per unit Previous period Current periodExplanation / Answer
a-1 Equivalent units =(110000*20%)+300000+(550000-300000)*60%= 472000 a-2 Cost per equivalent unit = 2572400/472000= 5.45 a-3 Conversion cost = 250000*60%*5.45= 817500 b Previous period 4.85 =426800/(110000*80%) Current period 5.45
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