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 1 year ago

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