In: Accounting
Smith Manufacturing uses a process cost system to manufacture
laptop computers. The following information summarizes operations
relating to laptop computer model #KJK20 during the quarter ending
March 31:
Units Direct
Labor
Work-in-process inventory, January 1
100
$50,000
Started during the quarter
500
Completed during the quarter
400
Work-in-process inventory, March 31
200
Costs added during the quarter
$720,000
Beginning work-in-process inventory was 50% complete for direct
labor costs. Ending work-in-process inventory was 75% complete for
direct labor costs.
Required
What is the equivalent unit of production using the weighted-average unit cost inventory valuation method?
equivalent unit of production using the weighted-average unit cost inventory valuation method | 550.00 | ||
Statement of Equivalent production | |||
Particulars | Direct Labour | %completion | Equivalent Labour |
Opening WIP | 100.00 | 100% | 100.00 |
Units started and completed=400 - 100 | 300.00 | 100% | 300.00 |
ending WIP = 500 - 300 | 200.00 | 75% | 150.00 |
Equivalent Units | 550.00 | ||