CloverSweet Inc. manufactures a product that goes through two departments prior

Question

CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing Department, during June: Percentage Completed UnitsMaterials Conversion 21,000 70% 25% Work in process, beginning Started into production Completed and transferred out Work in process, ending 337,000 316,000 42,000 50% 15% Work in process, beginning Cost added during June Materals 24,500 $469,000 Conversion 16,500 $125,000 Assume that the company uses the FIFO method. 1. Determine the equivalent units for June for the first process Materials Conversio Equivalent units of production 2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.) Materials Conversion Cost per equivalent unit 2 3 4 6

Explanation / Answer

1) Calculation of equivalent units for June

2) Cost per equivalent unit for June (Amount in $)

3) Calculation of total cost of ending work in process and transferred out units (Amt. in $)

4) Reconciliation of costs (Amount in $)

Particulars Material Conversion Work in process beginning (21,000*30%) = 6,300 (21,000*75%) = 15,750 Started and completed during June (316,000-21,000) = 295,000 295,000 Work in process, closing (42,000*50%) = 21,000 (42,000*15%) = 6,300 322,300 units 317,050 units

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