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
Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process....
Sandia Corporation manufactures metal toolboxes. It adds all
materials at the beginning of the manufacturing process. The
company has provided the following information:
Units
Costs
Beginning work in process (27% complete)
33,000
Direct materials
$
34,000
Conversion cost
94,000
Total cost of beginning work in process
$
128,000
Number of units started
68,000
Number of units completed and transferred to finished
goods
?
Ending work in process (57% complete)
84,000
Current period costs
Direct materials
$
87,000
Conversion cost
161,000...
Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process....
Sandia Corporation manufactures metal toolboxes. It adds all
materials at the beginning of the manufacturing process. The
company has provided the following information:
Units
Costs
Beginning work in process (26% complete)
39,000
Direct materials
$
34,000
Conversion cost
89,000
Total cost of beginning work in process
$
123,000
Number of units started
83,000
Number of units completed and transferred to finished
goods
?
Ending work in process (58% complete)
74,000
Current period costs
Direct materials
$
92,000
Conversion cost
161,000...
Atlantic manufacturing company uses process costing. All materials are added at the beginning of the process....
Atlantic manufacturing company uses process costing. All
materials are added at the beginning of the process. The company
uses weighted average method in measuring unit costs. There are
100,000 units in the beginning work-in-process in the month of May
(The company started its production in late April and did not
finish producing any unit). The conversion work is 70%
complete.
The costs of beginning WIP are $1,250,000, including
$100,000 of input of materials ($1 per EU), and $140,000 for labor...
Atlantic Manufacturing Company uses process costing. All materials are added at the beginning of the process....
Atlantic Manufacturing Company uses process costing. All materials
are added at the beginning of the process. The normal spoilage rate
is calculated as 10% of good units
completed.
The cost of the beginning work-in-process in the
month
of May is $3,000,000, including $1,600,000 of input of materials,
100,000 units, and $1,400,000 for conversion costs. The beginning
work-in-process is 70% complete.
During May, the input includes $7,400,000 for materials, 800,000
units started and $4,190,000 for conversion costs. There were
700,000 good...
Atlantic Manufacturing Company uses process costing. All materials are added at the beginning of the process....
Atlantic Manufacturing Company uses process costing. All
materials are added at the beginning of the process. The normal
spoilage rate is calculated as 10% of good units completed. The
cost of the beginning work-in-process in the month of May is
$3,000,000, including $1,600,000 of input of materials, 100,000
units, and $1,400,000 for conversion costs. The beginning
work-in-process is 70% complete. During May, the input includes
$7,400,000 for materials, 800,000 units started and $4,190,000 for
conversion costs. There were 700,000 good...
Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at...
Austin Co. manufactures a product called Aster in a
three-process series. All materials are introduced at the beginning
of the first process. Austin uses the first-in, first-out method of
inventory costing. Unit and cost data for the first process
(Department A) for the month of December follow:
Units
Completion
Cost
Work in process inventory:
December 1
12,000
60%
$140,400
December 31
5,000
40%
?
Started in December:
14,000
Direct materials cost
106,400
Conversion cost
70,310
Completed in December
21,000
?...
Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at...
Austin Co. manufactures a product called Aster in a
three-process series. All materials are introduced at the beginning
of the first process. Austin uses the first-in, first-out method of
inventory costing. Unit and cost data for the first process
(Department A) for the month of December follow:
Units
Completion
Cost
Work in process inventory:
December 1
12,000
60%
$140,400
December 31
5,000
40%
?
Started in December:
14,000
Direct materials cost
106,400
Conversion cost
70,310
Completed in December
21,000
?...
Austin Company manufactures a product called Aster in a three-process series. All materials are introduced at...
Austin Company manufactures a product called Aster in a
three-process series. All materials are introduced at the beginning
of the first process. Austin uses the first-in, first-out method of
inventory costing. Unit and cost data for the first process
(Department A) for the month of December follow:
Units
Completion
Cost
Work in process inventory:
December 1
12,000
60%
$140,400
December 31
5,000
40%
?
Started in December:
14,000
Direct materials cost
106,400
Conversion cost
70,310
Completed in December
21,000
?...
Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at...
Austin Co. manufactures a product called Aster in a
three-process series. All materials are introduced at the beginning
of the first process. Austin uses the first-in, first-out method of
inventory costing. Unit and cost data for the first process
(Department A) for the month of December follow:
Units
Completion
Cost
Work in process inventory:
December 1
12,000
60%
$140,400
December 31
5,000
40%
?
Started in December:
14,000
Direct materials cost
106,400
Conversion cost
70,310
Completed in December
21,000
?...
Manufacturing Inc. manufactures plastic thing-a-majigs. Materials are added at the beginning of the production process and...
Manufacturing Inc.
manufactures plastic thing-a-majigs. Materials are added at the
beginning
of the production process and
conversion costs are incurred uniformly. Production and cost
data for the month of June,
2016 are as follows.
Production data
Units
Percent Complete
Work in process units, June 1
2,425
57%
Units started into production
6,225
Work in process units, June 30
2,960
41%
Cost data
Work in process, June 1
Materials
$7,550
Coversion costs
5,800
$13,350
Direct materials
24,300
Direct labor...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
- Many people keep time using a 24 hour clock (11 is 11am and 23 is 11pm,...
- UNIX ONLY -- DIFFICULT LAB ASSIGNMENT This is an extremely difficult subject for me. Could you...
- Do you know why your credit card can be refused even though you are profitable?
- The Following Java expression: S/10 * 10 + 10 – S = C Show that this...
ADVERTISEMENT