Question

In: Accounting

A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout...

A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of May, there was no beginning Work in Process; 46400 units were completed and transferred out; and there were 13700 units in the ending Work in Process that were 20% complete. During May, $162270 materials costs and $98280 conversion costs were charged to the department. How much are unit production costs for materials and conversion costs for May if the weighted-average method is used, rounded to the nearest whole cent? Materials Conversion Costs $4.34 $2.12 $3.30 $2.00 $4.96 $3.01 $2.70 $2.00

Solutions

Expert Solution

Answer: $2.70; $2.00 4th option

Material cost per equivalent unit = $162,270/60,100 = $ 2.70 per unit

Conversion cost per equivalent unit = $98,280/49,140 =$ 2.00 per unit

Working:

Physical flow Schedule

Units to Account for

Units In BWIP

----

Units Started during the period

46,400+13,700

60,100

Total Units to account for

60,100

Units to Account for

Units Completed and transferred out

Started and Completed

46,400

Units in EWIP (20% complete)

13,700

Total Units to account for

60,100

Whole Units

% material

Material

% conversion

Conversion

Units Completed and transferred out

46,400

100%

46,400

    100%

46,400

Ending work in
process inventory

13,700

100%

13,700

      20%

2,740

Equivalent units of production for materials

60,100

 49,140

ekkarill92 answered 2 years ago
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