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In: Accounting

Houa Corp. manufactures charcoal in a mass production environment and uses process costing to allocate costs...

Houa Corp. manufactures charcoal in a mass production environment and uses process costing to allocate costs to inventory. All manufacturing is completed in one manufacturing department. Direct materials are added at the beginning of the manufacturing process and conversion costs are added evenly throughout. The following information was reported for current period:

Cost
Beginning WIP
50,000 units
Direct Materials $51,000
Conversion (75% complete) $97,115
Started
200,000 units
Direct Materials $304,000
Conversion $499,525
Ending WIP
40,000 units (40% complete)

a. Calculate Houa’s physical flow of units, equivalent units, cost per equivalent unit and assign costs to Finished Goods and Ending Work In Process using the Weighted Average method of processing costing. Show all work.

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Expert Solution

ekkarill92 answered 2 years ago
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