Jones Furinture has the following information for FY 2016 The beginning WIP was
ID: 2573735 • Letter: J
Question
Jones Furinture has the following information for FY 2016
The beginning WIP was 100% complete as to direct materials and 75% as to conversion costs
The ending WIP was 100% complete as to direct materials and 50% complete as to conversion costs.
The beginning work in process consisted of the following:
Jones Furinture uses weighted average method. Use this information to prepare the Cost Allocation section of the Cost of Production Report for FY 2016.
WIP - 1/1/16 100,000 units Units started into production 575,000 units WIP - 12/31/16 75,000 units Direct material put into production $575,000 Conversion cost put into production $843,750Explanation / Answer
Equivalent Units statement Material Conversion Units Input Particulars Units Output Equivalent units % complete Equivalent units % complete 100000 Beginning Wip 575000 Input Finished Goods 600000 600000 100% 600000 100% Closing WIP 75000 75000 100% 37500 50% 675000 675000 675000 637500 Statement Showing cost per unit Opening Cost Current Cost total Cost Equivalent units Cost per unit Material 100000 575000 675000 675000 1 Conversion 112500 843750 956250 637500 1.5 Cost per unit 2.5 Cost of production summary Total cost of Completed Goods 1,500,000 (600,000units@2.50 per unit) Cost of Closing WIP 131250 Material (75000*1 per unit) 75000 Conversion(37500*1.5 per unt) 56250
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.