Question

Materials are added at the beginning of the production process at Campo Company. The following information on the physical flow of units is available for the month of November:

Beginning work in process (54% complete)	57,000
Started in November	530,000
Completed in November and transferred out	485,000
Ending work in process (55% complete)	102,000

Cost data for November show the following:

Beginning WIP inventory
Direct materials costs	$	29,300
Conversion costs		55,700
Current period costs
Direct materials costs	$	300,950
Conversion costs		1,249,550

Required:

a. Compute the equivalent units for the conversion cost calculation assuming Campo uses the weighted-average method.

b. Compute the cost per equivalent unit for materials and conversion costs for November. (Round your answers to 2 decimal places.)

Answer 1

• [a]

	Material	Conversion
Equivalent units of production	587,000	541,100

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	485,000	100%	485,000	100%	485,000
Units of ENDING WIP	102,000	100%	102,000	55%	56,100
Equivalent Units of Production			587,000		541,100

• [b]

	Material	Conversion
Cost per Equivalent units	$                         0.56	$                              2.41

COST per EUP			Material		Conversion
Cost of Beginning WIP			$          29,300.00		$                                  55,700.00
Cost incurred during the period			$        300,950.00		$                            1,249,550.00
Total Costs		Costs	$        330,250.00	Costs	$                            1,305,250.00
Equivalent units of production		EUP	587,000	EUP	541,100
Cost per EUP			$              0.56261		$                                      2.41222