Question
In: Accounting
Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in...
Pitt Enterprises manufactures jeans. All materials are
introduced at the beginning of the manufacturing process in the
Cutting Department. Conversion costs are incurred uniformly
throughout the manufacturing process. As the cutting of material is
completed, the pieces are immediately transferred to the Sewing
Department. Information for the Cutting Department for the month of
May follows.
Work in Process, May 1 (32,000 units, 100% complete for direct
materials, 80% complete with respect to conversion costs; includes
$71,400 of direct material cost; $34,470 of conversion costs).
| Units started in May | 140,000 | |
| Units completed in May | 130,000 | |
Work in Process, May 31 (42,000 units, 100% complete for direct
materials; 60% complete for conversion costs).
| Costs incurred in May | |||
| Direct materials | $ | 342,900 | |
| Conversion costs | $ | 353,850 | |
If Pitt Enterprises uses the FIFO method of process costing,
compute the equivalent units for direct materials and conversion
respectively for May.
-
140,000 materials; 129,600 conversion.
-
172,000 materials; 155,200 conversion.
-
98,000 materials; 98,000 conversion.
-
129,600 materials; 140,000 conversion.
-
129,600 materials; 129,600 conversion.
Solutions
Expert Solution
Equivalent Material = Closing equivalent complete + Complete during month - Opening equivalent complete
| Equivalent units - Material | |
| Closing complete Material (42000 * 100%) | 42,000 |
| Complete during the month | 130,000 |
| Less: Opening complete Material (32000*100%) | (32,000) |
| Equivalent Material units | 140,000 |
Equivalent Conversion = Closing equivalent complete + Complete during month - Opening equivalent complete
| Equivalent units - Conversion | |
| Closing Complete conversion units (42000 * 60%) | 25,200 |
| Complete during the month | 130,000 |
| Less: Opening compete convesrion units (32000 * 80%) | (25,600) |
| Equivalent Conversion units | 129,600 |
140,000 Material; 129,600 Conversion
ekkarill92 answered 1 year agoRelated Solutions
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Completion
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Completion
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