Question
In: Accounting
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs...
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 75 percent complete as to beginning work-in-process inventory and 50 percent complete as to ending work-in-process inventory. Information about conversion costs follows:
| Units | Conversion Costs | |||||
| WIP at December 1 (75% complete) | 115,000 | $ | 431,250 | |||
| Units started and costs incurred during December | 555,000 | 2,600,625 | ||||
| Units completed and transferred to next department during December | 415,000 | ? | ||||
The Oils Division uses FIFO.
Required:
a-1. Compute the equivalent units for conversion costs.
a-2. Compute the cost per equivalent unit for conversion costs. (Round your answers to 2 decimal places.)
a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31? (Do not round intermediate calculations.)
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.)
Solutions
Expert Solution
| 1 | Equivalent Units: | ||||||||||
| Units | Working Note: | ||||||||||
| Completed Units | 300000 | Units Completed &Transferred | 415000 | ||||||||
| Working on Opening WIP(115000*25%) | 28750 | Less: From Opening WIP | 115000 | ||||||||
| Closing WIP(255000*50%) | 127500 | From Current | 300000 | ||||||||
| Equivalent Units | 456250 | ||||||||||
| Opening WIP | 115000 | ||||||||||
| Units Started | 555000 | ||||||||||
| Less: Transferred | 415000 | ||||||||||
| Closing WIP | 255000 | ||||||||||
| 2 | Cost Per Equivalent Unit: | ||||||||||
| Cost Incurred During the Period | 2600625 | ||||||||||
| Equivalent Units | 456250 | ||||||||||
| Cost Per Equivalent Unit: | 5.70 | ||||||||||
| 3 | Cost of Closing WIP: | ||||||||||
| Closing WIP(255000*50%) | 127500 | ||||||||||
| Cost Per Equivalent Unit: | 5.70 | ||||||||||
| Closing WIP | 726750 | ||||||||||
| B | Conversion Cost Per Equivalent Units: | Current | Last | ||||||||
| Cost Per Equivalent Unit: | 5.70 | 5.00 | |||||||||
| Last Period E Units: | |||||||||||
| (115000*75%) | 86250 | a | |||||||||
| WIP Cost | 431250 | b | |||||||||
| Conversion Cost Per Equivalent Units: | 5.00 | b/a | |||||||||
ekkarill92 answered 2 years agoRelated Solutions
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs...
The following information is available from the Oils Division of
Glasgow Corporation for December. Conversion costs for this
division were 75 percent complete as to beginning work-in-process
inventory and 50 percent complete as to ending work-in-process
inventory. Information about conversion costs follows.
Units
Conversion Costs
WIP at December 1 (75% complete)
115,000
$
431,250
Units started and costs incurred during December
555,000
2,600,625
Units completed and transferred to next department during
December
415,000
?
The Oils Division uses FIFO.
Required:...
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs...
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.
Units
Conversion Costs
WIP at December 1 (80% complete)
112,000
$
443,520
Units started and costs incurred during December
552,000
2,628,480
Units completed and transferred to next department during
December
412,000
?
The Oils Division uses FIFO.
Required:...
2. The following information is available from the Oils Division of Glasgow Corporation for December. Conversion...
2.
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.
Units
Conversion Costs
WIP at December 1 (80% complete)
110,000
$
426,800
Units started and costs incurred during December
550,000
2,572,400
Units completed and transferred to next department during
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410,000
?
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