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.
a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31?
b. What were the conversion costs per equivalent unit produced last period and this period, respectively?
Solutions
Expert Solution
| UNITS TO ACCOUNT FOR: | ||||||
| Beginning Work in Process units | 1,15,000 | |||||
| Add: Units Started in Process | 5,55,000 | |||||
| Total Units to account for: | 6,70,000 | |||||
| UNITS TO BE ACCOUNTED FOR: | ||||||
| Units completed from beginning WIP | 115000 | |||||
| Units started and completed | 3,00,000 | |||||
| Ending Work in Process | 2,55,000 | |||||
| Total Units to be accounted for: | 6,70,000 | |||||
| Equivalent Units: | ||||||
| UNITS | Conversion Cost | |||||
| % Completion | Units | |||||
| Units completed from Beg. | 115000 | 25% | 28,750 | |||
| Units started and completed | 300000 | 100% | 3,00,000 | |||
| Ending Work in Process | 255000 | 50% | 1,27,500 | |||
| Total Equivalent units | 670000 | 4,56,250 | ||||
| Req a1 | ||||||
| Equivalent units of Conversion cost: | 456250 | |||||
| Reqa-2 | ||||||
| Conversion cost incurred during the period | 2600625 | |||||
| Divide: EUP of conversion cost | 456250 | |||||
| Conversion cost per EUP | 5.7 | |||||
| Reqa-3 | ||||||
| EUP of ending WIP inventory | 127500 | |||||
| Multiply: Conversion cost per EUP | 5.7 | |||||
| Conversion cost included in Ending WIP | 726750 | |||||
| Req b. | ||||||
| Conversion cost in beginning WIP | 431250 | |||||
| Divide: EUP complted in previous period (115000*75%) | 86250 | |||||
| Conversion cost per EUP in last period | 5 | |||||
| Last period | Current period | |||||
| Conversion cost per EUP | 5 | 5.7 | ||||
ekkarill92 answered 3 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...
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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
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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
$
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Units started and costs incurred during December
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Units completed and transferred to next department during
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