Oat Company manufactures oatmeal for breakfast cereal. Direct materials are adde

Question

Oat Company manufactures oatmeal for breakfast cereal. Direct materials are added at the beginning of the manufacturing process and conversion costs are incurred eventy throughout the manufacturing process. Data for the most recent period are as follows: Work in process, January 31-65,000 units 40% completed for conversion costs Units started during February, 475,000 Work in process, February 28-40,000 units 20% completed for conversion costs Costs for February Direct materials Conversion costs $184,000 $139,200 $ 950,000 $1,638,800 Calculate Oat Company's physical flow of units, equivalent units, cost per equivalent unit and assign costs to Finished Goods and Ending Work-in-Process Inventories using the weighted average method of processing costing.

Explanation / Answer

Beginning work in process 65,000 Completed & transferred 500,000 started during the year 475,000 ending work in process 40,000 units to be accounted 540,000 units accounted for 540,000 Equivalent units Materials CC Completed & transferred 500,000 500,000 500,000 ending work in process 40,000 40,000 8,000 Equivalent units 540,000 508,000 cost per unit Materials CC total beginning work in process 184,000 139,200 323,200 cost added during the year 950,000 1,638,800 2,588,800 total cost 1,134,000 1,778,000 2,912,000 Equivalent units 540,000 508,000 cost per unit 2.1 3.5 5.6 cost assigned completed & tranferred (500,000*5.6) 2800000 Ending work in process direct materials (40,000*2.1) 84000 Conversion   (8,000*3.5) 28000 112000 total cost accounted for 2912000

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

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