Question
In: Accounting
Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for...
Pablo Company calculates the cost for an equivalent unit of production using process costing.
| Data for June | |||||||||
| Work-in-process inventory, June 1: 25,000 units | |||||||||
| Direct materials: 100% complete | $ | 50,000 | |||||||
| Conversion: 40% complete | 20,000 | ||||||||
| Balance in work-in-process, June 1 | $ | 70,000 | |||||||
| Units started during June | 59,000 | ||||||||
| Units completed and transferred out | 59,000 | ||||||||
| Work-in-process inventory, June 30 | 25,000 | ||||||||
| Direct materials: 100% complete | |||||||||
| Conversion: 80% complete | |||||||||
| Costs incurred during June | |||||||||
| Direct materials | $ | 188,800 | |||||||
| Conversion costs | |||||||||
| Direct labor | 188,800 | ||||||||
| Applied overhead | 236,000 | ||||||||
| Total conversion costs | $ | 424,800 | |||||||
Required:
1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods.
Solutions
Expert Solution
|
EUP - Weighted Average Method |
Units |
% Material |
EUP Materials |
% Conversion |
EUP - Conversion |
|
Units TRANSFERRED |
59,000 |
100% |
59,000 |
100% |
59,000 |
|
Units of ENDING WIP |
25,000 |
100% |
25,000 |
80% |
20,000 |
|
Equivalent Units of Production |
84,000 |
79,000 |
|
EUP - FIFO Method |
Units |
% Material |
EUP Materials |
% Conversion |
EUP - Conversion |
|
Units of ENDING WIP |
25,000 |
100.0% |
25,000 |
80.0% |
20,000 |
|
Units STARTED & COMPLETED |
34,000 |
100% |
34,000 |
100% |
34,000 |
|
Units of beginning WIP |
25,000 |
0.00% |
- |
60.00% |
15,000 |
|
Equivalent Units of Production |
59,000 |
69,000 |
ekkarill92 answered 1 year agoRelated Solutions
Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for...
Pablo Company
calculates the cost for an equivalent unit of production using
process costing.
Data for June
Work-in-process inventory,
June 1: 20,000 units
Direct materials: 100% complete
$
40,000
Conversion: 40% complete
16,000
Balance in work-in-process, June
1
$
56,000
Units started during June
48,000
Units completed and transferred
out
48,000
Work-in-process inventory, June
30
20,000
Direct materials: 100% complete
Conversion: 80% complete
Costs incurred during June
Direct materials
$
129,600
Conversion costs
Direct labor
129,600
Applied overhead
168,000
Total...
Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for...
Pablo Company calculates the cost for an equivalent unit of
production using process costing. Data for June Work-in-process
inventory, June 1: 15,000 units Direct materials: 100% complete $
30,000 Conversion: 40% complete 12,000 Balance in work-in-process,
June 1 $ 42,000 Units started during June 37,000 Units completed
and transferred out 37,000 Work-in-process inventory, June 30
15,000 Direct materials: 100% complete Conversion: 80% complete
Costs incurred during June Direct materials $ 81,400 Conversion
costs Direct labor 81,400 Applied overhead 111,000 Total...
Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for...
Pablo Company
calculates the cost for an equivalent unit of production using
process costing.
Data for June
Work-in-process inventory,
June 1: 20,000 units
Direct materials: 100% complete
$
40,000
Conversion: 40% complete
16,000
Balance in work-in-process, June
1
$
56,000
Units started during June
48,000
Units completed and transferred
out
48,000
Work-in-process inventory, June
30
20,000
Direct materials: 100% complete
Conversion: 80% complete
Costs incurred during June
Direct materials
$
129,600
Conversion costs
Direct labor
129,600
Applied overhead
168,000
Total...
Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for...
Pablo Company calculates the cost for an equivalent unit of
production using process costing. Data for June Work-in-process
inventory, June 1: 19,000 units Direct materials: 100% complete $
38,000 Conversion: 40% complete 15,200 Balance in work-in-process,
June 1 $ 53,200 Units started during June 45,800 Units completed
and transferred out 45,800 Work-in-process inventory, June 30
19,000 Direct materials: 100% complete Conversion: 80% complete
Costs incurred during June Direct materials $ 119,080 Conversion
costs Direct labor 119,080 Applied overhead 155,720 Total...
Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for...
Pablo Company calculates the cost for an equivalent unit of
production using process costing.
Data for June
Work-in-process inventory, June 1: 12,000
units
Direct materials: 100% complete
$
24,000
Conversion: 40% complete
9,600
Balance in work-in-process, June 1
$
33,600
Units started during June
30,400
Units completed and transferred out
30,400
Work-in-process inventory, June 30
12,000
Direct materials: 100% complete
Conversion: 80% complete
Costs incurred during June
Direct materials
$
57,760
Conversion costs
Direct labor
57,760
Applied overhead
82,080
Total...
What are the benefits of equivalent units of production in process costing?
What are the benefits of equivalent units of production in
process costing?
elow is selected information from Chipset's cost of production report: Cost per equivalent unit in process...
elow is selected information from Chipset's cost of production
report:
Cost per equivalent unit in process
$10
Units completed
15,000
Total costs in process
$332,000
Equivalent units of materials in ending inventory
2,000
Cost per equivalent unit of materials
$6
The ending inventory of work-in-process is complete as to
materials.
The cost of conversion in the ending inventory is:
Calculate the cost per equivalent unit of material and conversion cost for January - using the...
Calculate the cost
per equivalent unit of material and conversion cost for January -
using the Weighted Average Approach
Units
Materials
Conversion
Work in process January 1
2,500
50%
35%
Work in process January
31
45%
25%
Materials cost in work in
process January 1
$25,000
Conversion costs in work in
process January 1
$10,000
Units started in
production
12,000
Units transferred to the next
department
8,000
Materials cost added during
January
$20,000
Conversion costs added during
January
$7,500
Complete...
Equivalent Units of Production: Average Cost Method Units of production data for the two departments of...
Equivalent Units of Production: Average Cost Method
Units of production data for the two departments of Atlantic
Cable and Wire Company for July of the current fiscal year are as
follows:
Drawing Department
Winding Department
Work in process, July 1
2,100 units, 65% completed
650 units, 30% completed
Completed and transferred to next processing department during
July
33,600 units
32,750 units
Work in process, July 31
1,600 units, 70% completed
1,100 units, 20% completed
Each department uses the average cost...
Process Costing using the FIFO Method A process cost system is used when a company produces...
Process Costing using the FIFO Method
A process cost system is used when a company produces a product
that is homogeneous-that is, individual units are indistinguishable
from each other.
Costs flow from one production department to the next and
materials, labor and overhead are added until the final product is
moved to finished goods inventory ready to be sold. The flowchart
illustrates the flow of costs into Work in Process and Finished
Goods in a process costing system.
Cost Flows...
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