The AMZ company produces winter growing pots for garden centres. Materials and conversion costs in the...

The AMZ company produces winter growing pots for garden centres. Materials and conversion costs in the XYZ Handling Department are applied at various rates in the manufacturing process.

For September 2020, the beginning work in process inventory in the Kiln Handling Department was 3,300 units that were 35% complete with respect to materials and 25% complete with respect to conversion costs. The ending work in process inventory was 6,800 units averaging 40% completion with respect to materials and 20% complete for conversion costs.

Production data shows that 95,000 units were started in production during the month. Beginning work in process inventory costs included $12,548 for materials and $10,440 for conversion costs. For the period, additional costs of $580,650 for materials and $852,600 for conversion costs were added.

How many units were completed and transferred out of the Kiln Handling Department?

Calculate the number of equivalent units of materials for the period.

Calculate the number of equivalent units of conversion costs for the period.

What are the total costs that must be accounted for?

What is the cost per equivalent unit for material? Please provide your answer to 3 decimal places.

What is the cost per equivalent unit for conversion costs? Please provide your answer to 3 decimal places.

What was the cost of units completed and transferred out of the department?

Solutions

Expert Solution

Part-1&2 Statement showing Computation of Equivalent Unit- Weighted Average- The AMZ Company
Particular	Whole units	Materials	Conversion

Unit Completed & Transferred	91500	91500	91500
Ending inventory	6800	2720	1360
Units accounted for	98300	94220	92860
Equivalent Unit of Production
	Materials	Conversion
Equivalent units of production	94220	92860

Working Note : Computaiton Unit Completed &Transferred
Beginning WIP inventory	3300
Add: Units started during May	95000
Less: Ending inventory	6800
Units completed and transferred	91500

Part-3 Total Cost accounted
Beginning WIP inventory	$22,988.00
Current costs incurred	$1,433,250.00
Tototal costs to be accounted for	$1,456,238.00

Part-4&5. Statement showing Cost per Equivalent Unit
Particular	Tototal	Material	Conversion
Beginning WIP inventory	$22,988.00	$12,548.00	$10,440.00
Current costs incurred	$1,433,250.00	$580,650.00	$852,600.00
Tototal cost to account for (a)	$1,456,238.00	$593,198.00	$863,040.00
Equivalent units (b)		94220	92860
Cost per Equivalent unit (a/b)		$6.296	$9.294

Part-5 Computation of Cost of units completed and transferred
Material (91500*6.296)	$576,084.00
Conversion (91500*9.294)	$850,401.00
Tototal	$1,426,485.00

ekkarill92 answered 1 year ago

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