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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 conversion costs $ 297,600

Required:

1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods. (Round your answers to 3 decimal places.)

Weighted Aver Cost per EU FIFO cost per EU
Direct Materials
Converstion
Total Costs

Solutions

Expert Solution

Weighted Average Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
A1. Quantities Equivalent Units
Whole Units Materials Conversion Cost
Units to be account for
Work in Process, Beginning 100%, 40% 20000
add:Started into production 48000
-Total Units 68000
Units accounted for
Transferred out 48000 48000 48000
Work in Process, Ending 100%, 80% 20000 20000 16000 100% and 80% 100% 80%
Equivalent Units-Weighted Average 68000 68000 64000
A2. Cost
Materials Convsersion Cost Total
Work in Process, Beginning $         40,000 $                   16,000 $            56,000
add:Started into production $       129,600 $                 297,600 $          427,200
Total Cost to account for $       169,600 $                 313,600 $          483,200
Equivalent Units 68000 64000
Unit Cost Total Cost/Equivalent Units 2.49 4.90 7.39
FIFO
A1. Quantities Equivalent Units
Whole Units Materials Conversion Cost Complete
Units to be account for
Work in Process, Beginning 100%, 40% 20000 0 12000 100% 40%
Unit Started and Completed in the period Transferred Out-Beg WIP 48000 48000 48000 100% 100%
Work in Process, Ending 100%, 80% 20000 20000 16000 100% 80%
Equivalent Units-FIFO 88000 68000 76000
A2. Cost
Materials Convsersion Cost Total
Cost added during period $       129,600 $                 297,600 $          427,200
Total Cost to account for $       129,600 $                 297,600 $          427,200
Equivalent Units 68000 76000
Unit Cost Total Cost/Equivalent Units 1.91 3.92 5.82

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