CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown...

		Percent Complete

	Units	Materials			Conversion
Work in process, beginning	52,000		75	%		30	%
Started into production	450,000
Completed and transferred out	400,000
Work in process, ending	102,000		60	%		40	%

		Materials			Conversion
Work in process, beginning		$	47,500		$	27,000
Cost added during June		$	427,500		$	147,000

Required:

Assume that the company uses the weighted-average method.

1. Determine the equivalent units for June for the first process.

2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.)

3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Round intermediate calculations to 3 decimal places.)

4. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units transferred out with the costs in beginning inventory and costs added during the period. (Round intermediate calculations to 3 decimal places.)

Solutions

Expert Solution

1 Equivalent unit of conversion of Cloversweet inc

= 400,000 + (102,000 × 40%) = 440,800 units

Equivalent unit of material of CloverSweer

= 400,000 + (102,000 × 60%) = 461,200 units

2 Cost per equivalent unit of material

= (427,500 + 47,500) / 461,200 = $1.03

Cost per unit of conversion of Cloversweet Inc

= (147,000 + 27,000) / 440,800 = $0.39

3 Cost of units transferred out

= (400,000 × 1.03) + (400,000 × 0.39) = $569,863

Cost of Ending inventory of Cloversweet

= (40,800 × 0.39) + (1.03 × 61,200) = $79,137

4 Cost reconciliation of CloverSweet

Particulars	units
Beginning work in process	74,500
Cost added during the period	574,500
Total	649,000
Cost allocated to ending inventory	79,137
Cost allocated to units completed and transferred out	569,863
Total	649,000

Total cost of Cloversweet is $649,000, including beginning inventory $74,500 and cost added during the period $574,500.

ekkarill92 answered 10 months ago

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