Sparky Corporation uses the weighted-average method of process costing. The following information is available for February...

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:

Units:
Beginning Inventory: 46,000 units, 100% complete as to materials and 60% complete as to conversion.
Units started and completed: 150,000.
Units completed and transferred out: 196,000.
Ending Inventory: 40,000 units, 100% complete as to materials and 25% complete as to conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: $63,000.
Costs in beginning Work in Process - Conversion: $68,850.
Costs incurred in February - Direct Materials: $420,600.
Costs incurred in February - Conversion: $619,150.

Calculate the cost per equivalent unit of conversion.

Solutions

Expert Solution

Answer :

$236,000 is cost per equivalent unit of conversion.

explanation :


Sparkey Corporation
Production cost record
Molding section

	details of Physical units(PU) & equivalent units(EU) estimation
	Units to be valuedfor	PU
	Units in the starting WIP itemization	46000
	Units during the period	190000
	Total units to be valuedfor	236000
			EU
	Units valuedfor	PU	Material	Conversion
	Units finished and trasmitted out	196000	196000	196000
	Units in ending WIP inventory	40000	40000	16000
	Total units valuedfor	236000	236000	212000

	details of amount to be valued for

	Costs to be valuedfor	Materials	Conversion	Total
	Cost in starting WIP	63,000	68850	131,850
	Costs incurred during the period	307000	619150	926150
	Total costs to be valuedfor	370,000	688,000	1,058,000

	estimation of costs per EU
		Materials	Conversion
	Total costs to be valued for(a)	370,000	688,000
	Total equivalent units valued for(b)	236,000	212,000
	Cost per EU(a)/(b)	1.56779661	3.25

	EU of PRODUCTS	236000

	Answer: 236,000

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February...

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 46,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 150,000. Units completed and transferred out: 196,000. Ending Inventory: 40,000 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $63,000. Costs in beginning Work in Process -...

Sparky Corporation uses the FIFO method of process costing. The following information is available for February...

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 110,000. Units completed and transferred out: 135,000. Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $43,000. Costs in beginning Work in Process -...

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February...

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department: Equivalent units of production—direct materials 102,000 EUP Equivalent units of production—conversion 88,000 EUP Costs in beginning Work in Process—direct materials $ 54,800 Costs in beginning Work in Process—conversion $ 40,300 Costs incurred in February—direct materials $ 463,500 Costs incurred in February—conversion $ 582,200 The cost per equivalent unit of production for direct materials is: part b During November, the production...

Richards Corporation uses the weighted-average method of process costing. The following information is available for October...

Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 97,000 units, 70% complete as to materials and 25% complete as to conversion. Units started and completed: 284,000. Units completed and transferred out: 381,000. Ending Inventory: 38,500 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process -...

Richards Corporation uses the weighted-average method of process costing. The following information is available for October...

Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process -...

Fabian Company uses process costing and the weighted average method. The following information was available for...

Fabian Company uses process costing and the weighted average method. The following information was available for April: units Costs Work in Process, April 1 481 $ 6,500 Work in Process, April 30 375 (A) During April, 930 units were started, and costs incurred during the month were $51,000. Ending inventory was 50% complete. Based on the information given, (A) above would equal what amount? (Do not round your intermediate calculations. Round your final answer to the nearest dollar.)

Fever Corporation uses the weighted average method of process costing. The company has the following information...

Fever Corporation uses the weighted average method of process costing. The company has the following information for the period: Beginning Work in Process: 2000 units 100% complete for materials, 75% complete for conversion costs Units started during the period: 10,000 Ending work in process: 4,000 units 75% complete for materials, 50% complete for conversion costs Costs for the period: Beginning work in process: Materials: $1,100 Conversion Costs: $2,000 Costs added during the period: Materials: $11,000 Conversion Costs: $30,000 A)...

Adam Company uses the weighted-average method in its process costing system. The following information for the...

Adam Company uses the weighted-average method in its process costing system. The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process): Number of Units Labour and overhead percentage complete Work in process inventory, Sept. 1 60,000 15% Transferred in the during the month 105,000 Work in process inventory, Sept. 30 40,000 20% Transferred In Materials Labour and overhead Beginning work-in-process inventory $30,000 $16,000 Cost added...

Richards Corporation uses the FIFO method of process costing. The following information is available for October...

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 85,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 255,000. Units completed and transferred out: 340,000. Ending Inventory: 32,500 units, 40% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $42,200. Costs in beginning Work in Process -...

Richards Corporation uses the FIFO method of process costing. The following information is available for October...

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 93,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 263,000. Units completed and transferred out: 356,000. Ending Inventory: 36,500 units, 40% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $50,200. Costs in beginning Work in Process -...

Subjects