A process's beginning work in process inventory has $6,000 in conversion costs. During the period 40,000...

A process's beginning work in process inventory has $6,000 in conversion costs. During the period 40,000 units are completed. Total period added $84,000 conversion costs. There are 15,000 units in work in process, one-third complete for conversion, at period -end. What is the cost per equivalent unit of production for conversion using weighted average method?

a. $0.50 per EUP

b. $1.87 per EUP

c. $2.00 per EUP

d.$2.10 per EUP

e. $2.25 per EUP

Solutions

Expert Solution

Correct answer----------------c. $2.00 per EUP

Working

Statement of Equivalent Units(Weighted average)
		Conversion
	Units		Complete %	Equivalent units
Transferred out	40,000		100%	40,000
Ending WIP	15,000		33%	5,000
Total	55,000		Total	45,000

Cost per Equivalent Units (Weighted average)
COST			Conversion
Beginning WIP Inventory Cost (A)			$ 6,000
Cost incurred during period (B)			$ 84,000
Total Cost to be accounted for (C=A+B)			$ 90,000
Total Equivalent Units(D)			45,000
Cost per Equivalent Units (E=C/D)			$ 2.00

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Litres Costs Beginning work in process inventory 0 litres Beginning work in process inventory $0 Started...

Litres Costs Beginning work in process inventory 0 litres Beginning work in process inventory $0 Started production 14,300 litres Costs added during November: Completed and transferred out to Chicken 21,740 Retort in November 13,600 litres Cream 4,000 Ending work in process inventory Green peppers and mushrooms 5,440 (60% of the way through the Direct labour 11,200 mixing process) 700 litres Manufacturing overhead 9,830 Total costs $52,210 1. Fill in the time line for the Mixing Department. 2. Use the time...

1. Units Beginning Work-in-Process 5,000 Started During the Period 50,000 Ending Work-in-Process 2,000 The ending work-in-process inventory...

1. Units Beginning Work-in-Process 5,000 Started During the Period 50,000 Ending Work-in-Process 2,000 The ending work-in-process inventory is 90% complete. What is the total number of equivalent units? 2. At the beginning of the period, there were 800 units of product in a company's work in process inventory. 3,000 additional units of product were started during the period. 1,500 units of product were in the Work in Process account at the end of the period. The ending work in process inventory...

Materials are added at the beginning of the process and conversion costs are added uniformly. Work...

Materials are added at the beginning of the process and conversion costs are added uniformly. Work in? process, beginning: Number of units 15 comma 00015,000 Transferredminus?in costs ?$94,000 Direct materials? (100%) ?$22,500 Conversion costs? (75%) ?$25,400 Units transferredminus??in: Number of units 52 comma 50052,500 Transferredminus?in costs ?$640,500 Units completed 41 comma 00041,000 Costs during the? period: Direct materials ?$155,475 Conversion costs ?$213,225 Work in? process, ending: Number of units 26 comma 50026,500 ?(100% complete for materials and? 35% complete for?...

Satina Corporation's Department A has the following information: % Completed Costs Beginning work in process: 6,000...

Satina Corporation's Department A has the following information: % Completed Costs Beginning work in process: 6,000 units Direct Materials 80 $ 43,708 Conversion 40 35,550 New Units Started: 28,000 units Direct Materials 112,000 Conversion 88,200 Ending work in process: 2,000 units Direct Materials 60 Conversion 50 Required: Complete the tables below using the weighted-average and FIFO methods Physical Units Weighted Average Equivalent Units FIFO Equivalent Units Materials Conversion Materials Conversion Beginning WIP Units started Total to account for Units Finished...

Chicotti Company has 3,000 units in beginning work in process, 30% complete as to conversion costs,...

Chicotti Company has 3,000 units in beginning work in process, 30% complete as to conversion costs, 26,000 units transferred out to finished goods, and 2,000 units in ending work in process 65% complete as to conversion costs. The beginning and ending inventory is fully complete as to materials costs. How much are equivalent units for conversion costs if the weighted-average method is used? a. 25,200 b. 27,300 c. 23,000 d. 24,300

Work-in-process inventory, January 1, 2011 $ 51,000 Work-in-process inventory, December 31, 2011 $ 56,500 Conversion costs...

Work-in-process inventory, January 1, 2011 $ 51,000 Work-in-process inventory, December 31, 2011 $ 56,500 Conversion costs during the year $ 423,000 1. If direct materials used during the year were $143,000, what was cost of goods manufactured? 2. If the cost of goods manufactured for the year was $575,000, what was the amount of direct materials used during the year?

Crane Company has beginning work in process inventory of $124000 and total manufacturing costs of $286000....

Crane Company has beginning work in process inventory of $124000 and total manufacturing costs of $286000. If cost of goods manufactured is $260000, what is the cost of the ending work in process inventory? $170000. $150000. $98000. $130000.

Required: a. Beginning inventory had 11,400 units 30 percent complete with respect to conversion costs. During...

Required: a. Beginning inventory had 11,400 units 30 percent complete with respect to conversion costs. During the period, 11,400 units were started. Ending inventory had 9,250 units 10 percent complete with respect to conversion costs. How many units were transferred out? b. Beginning inventory consisted of 16,000 units with a direct materials cost of $54,500. The equivalent work represented by all direct materials costs in the WIP Inventory account amounted to 75,000 units. Ending inventory had 23,000 units that were...

Ending inventory of work in process is $200,000 while the beginning inventory of work-in-process is $400,000....

Ending inventory of work in process is $200,000 while the beginning inventory of work-in-process is $400,000. The company had ending inventory of direct materials of $250,000 and beginning inventory of direct materials of $800,000. Direct materials purchased during the period was $700,000. Discount received on direct materials purchased was $150,000 while the cost of direct materials returned was $50,000. There were records of delivery expenses (freight-out) in the amount of $70,000; and as a result of FOB shipping point on...

Work in Processâ€”Forming Beginning inventory, October 1 26,482 Direct materials 169,798 Conversion costs 162,400 Ending inventory...

Work in Processâ€”Forming Beginning inventory, October 1 26,482 Direct materials 169,798 Conversion costs 162,400 Ending inventory ? The Forming Department had 10,350 partially complete units in beginning work in process inventory. The department started work on 76,250 units during the month and ended the month with 8,600 units still in work in process. These unfinished units were? 60% complete as to direct materials but? 20% complete as to conversion work. The beginning balance of $26,482 consisted of $21,470 of direct...

Subjects