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Required information Skip to question [The following information applies to the questions displayed below.] The Matsui...

Required information

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[The following information applies to the questions displayed below.]

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day.

Beginning WIP inventory
Direct materials $ 982
Conversion costs 377
Current period costs
Direct materials 15,650
Conversion costs 7,903

Quantity information is obtained from the manufacturing records and includes the following.

Beginning inventory 800 units (65% complete as to materials,
53% complete as to conversion)
Current period units started 4,700 units
Ending inventory 1,600 units (45% complete as to materials,
15% complete as to conversion)

Required:

a. Compute the equivalent units for the materials and conversion cost calculations.

b. Compute the cost per equivalent unit for direct materials and conversion costs.

Solutions

Expert Solution

a) Materials Conversion Costs
Transferred Out                        3,900                      3,900
Ending WIP                            720                         240
Equivalent Units                        4,620                      4,140
Trnasferred Out = Beginning Inventory + Current Period Units Started - Ending Inventory
= 800+4,700-1,600
=3,900
b) Materials Conversion Costs
Opening Cost 982 377
Current Period Cost 15650 7903
Total 16632 8280
Equivalent Units                        4,620                      4,140
Cost per Equivalent Unit                          3.60                        2.00
Thank You!
Please comment for any query!

ekkarill92 answered 2 years ago
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