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Cornerstone Exercise 6.6 (Algorithmic) Nonuniform Inputs Apeto Company produces premium chocolate candy bars. Conversion costs are...
Cornerstone Exercise 6.6 (Algorithmic) Nonuniform Inputs Apeto Company produces premium chocolate candy bars. Conversion costs are added uniformly. For February, EWIP is 30 percent complete with respect to conversion costs. Materials are added at the beginning of the process. The following information is provided for February: Physical flow schedule: Units to account for: Units in BWIP 0 Units started 70,000 Total units to account for 70,000 Units to account for: Units completed: From BWIP 0 Started and completed 48,000 48,000 Units in EWIP 22,000 Total units accounted for 70,000 Inputs Direct Materials Conversion Costs $31,500 $54,600 Required: 1. Calculate the equivalent units for each input category. Equivalent Units Direct Materials Conversion 2. Calculate the unit cost for each category and in total. If required, round your answers to the nearest cent. Unit direct materials cost $ Unit conversion cost $ Total unit cost $ 3. What if a different type of materials is also added at the end of the process (a candy wrapper), costing $4,800? Calculate the new unit cost. If required, round your answer to the nearest cent. $ per unit
Solutions
Expert Solution
| Beggining units | 0 | Transferred out | 48,000 |
| Started intro production | 70000 | Ending units | 22,000 |
| Units accounted for | 70000 | 70000 | |
| Equivalent units | Material | Conversion cost | |
| Units transferred A | 48000 | 48000 | |
| Ending Units | 22,000 | 22,000 | |
| Completion | 100% | 30% | |
| B | 22000 | 6600 | |
| Total units | 70000 | 54600 | |
| Cost per equivalent units | |||
| Particulars | Material | Conversion cost | total |
| As at beginning | 0 | 0 | 0 |
| Added during the month | 31500 | 54600 | 86100 |
| Cost to be accounted for | 31500 | 54600 | 86100 |
| Total eqivalent units | 70000 | 54600 | |
| Cost per equivalent unit | 0.45 | 1.00 | 1.45 |
| Cost per equivalent unit = Cost to be accounted for / Total equivalent units | |||
3.
| Cost per equivalent units | |||
| Particulars | Material | Conversion cost | total |
| As at beginning | 0 | 0 | 0 |
| Added during the month | 36300 | 54600 | 90900 |
| Cost to be accounted for | 36300 | 54600 | 90900 |
| Total eqivalent units | 70000 | 54600 | |
| Cost per equivalent unit | 0.52 | 1.00 | 1.52 |
| Cost per equivalent unit = Cost to be accounted for / Total equivalent units | |||
ekkarill92 answered 1 year agoRelated Solutions
Nonuniform Inputs Apeto Company produces premium chocolate candy bars. Conversion costs are added uniformly. For February,...
Nonuniform Inputs
Apeto Company produces premium chocolate candy bars. Conversion
costs are added uniformly. For February, EWIP is 30 percent
complete with respect to conversion costs. Materials are added at
the beginning of the process. The following information is provided
for February:
Physical flow schedule:
Units to account for:
Units in
BWIP
0
Units started
60,000
Total units to account for
60,000
Units accounted for:
Units
completed:
From BWIP
0
Started
and completed
50,000
50,000
Units in
EWIP...
Cost of Production Report Venus Chocolate Company processes chocolate into candy bars. The process begins by...
Cost of Production Report
Venus Chocolate Company processes chocolate into candy bars. The
process begins by placing direct materials (raw chocolate, milk,
and sugar) into the Blending Department. All materials are placed
into production at the beginning of the blending process. After
blending, the milk chocolate is then transferred to the Molding
Department, where the milk chocolate is formed into candy bars. The
following is a partial work in process account of the Blending
Department at March 31, 2016:
ACCOUNT...
Cost of Production Report Venus Chocolate Company processes chocolate into candy bars. The process begins by...
Cost of Production Report
Venus Chocolate Company processes chocolate into candy bars. The
process begins by placing direct materials (raw chocolate, milk,
and sugar) into the Blending Department. All materials are placed
into production at the beginning of the blending process. After
blending, the milk chocolate is then transferred to the Molding
Department, where the milk chocolate is formed into candy bars. The
following is a partial work in process account of the Blending
Department at March 31, 2016:
ACCOUNT...
Cost of Production Report Venus Chocolate Company processes chocolate into candy bars. The process begins by...
Cost of Production Report
Venus Chocolate Company processes chocolate into candy bars. The
process begins by placing direct materials (raw chocolate, milk,
and sugar) into the Blending Department. All materials are placed
into production at the beginning of the blending process. After
blending, the milk chocolate is then transferred to the Molding
Department, where the milk chocolate is formed into candy bars. The
following is a partial work in process account of the Blending
Department at March 31, 2016:
ACCOUNT...
Cost of Production Report Venus Chocolate Company processes chocolate into candy bars. The process begins by...
Cost of Production Report
Venus Chocolate Company processes chocolate into candy bars. The
process begins by placing direct materials (raw chocolate, milk,
and sugar) into the Blending Department. All materials are placed
into production at the beginning of the blending process. After
blending, the milk chocolate is then transferred to the Molding
Department, where the milk chocolate is formed into candy bars. The
following is a partial work in process account of the Blending
Department at March 31, 2016:
ACCOUNT...
Cost of Production Report Venus Chocolate Company processes chocolate into candy bars. The process begins by...
Cost of Production Report
Venus Chocolate Company processes chocolate into candy bars. The
process begins by placing direct materials (raw chocolate, milk,
and sugar) into the Blending Department. All materials are placed
into production at the beginning of the blending process. After
blending, the milk chocolate is then transferred to the Molding
Department, where the milk chocolate is formed into candy bars. The
following is a partial work in process account of the Blending
Department at March 31, 2016:
ACCOUNT...
Cost of Production Report Venus Chocolate Company processes chocolate into candy bars. The process begins by...
Cost of Production Report Venus Chocolate Company processes
chocolate into candy bars. The process begins by placing direct
materials (raw chocolate, milk, and sugar) into the Blending
Department. All materials are placed into production at the
beginning of the blending process. After blending, the milk
chocolate is then transferred to the Molding Department, where the
milk chocolate is formed into candy bars. The following is a
partial work in process account of the Blending Department at March
31, 2016: ACCOUNT...
Venus Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw...
Venus Chocolate Company processes chocolate into candy bars. The
process begins by placing direct materials (raw chocolate, milk,
and sugar) into the Blending Department. All materials are placed
into production at the beginning of the blending process. After
blending, the milk chocolate is then transferred to the Molding
Department, where the milk chocolate is formed into candy bars. The
following is a partial work in process account of the Blending
Department at March 31, 2016:
ACCOUNT Work in Process—Blending
Department...
Venus Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw...
Venus Chocolate Company processes chocolate into candy bars. The
process begins by placing direct materials (raw chocolate, milk,
and sugar) into the Blending Department. All materials are placed
into production at the beginning of the blending process. After
blending, the milk chocolate is then transferred to the Molding
Department, where the milk chocolate is formed into candy bars. The
following is a partial work in process account of the Blending
Department at March 31, 2016:
ACCOUNT Work in Process—Blending
Department...
Venus Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw...
Venus Chocolate Company processes chocolate into candy bars. The
process begins by placing direct materials (raw chocolate, milk,
and sugar) into the Blending Department. All materials are placed
into production at the beginning of the blending process. After
blending, the milk chocolate is then transferred to the Molding
Department, where the milk chocolate is formed into candy bars. The
following is a partial work in process account of the Blending
Department at March 31, 2016:
ACCOUNT Work in Process—Blending
Department...
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