Hamilton, Inc. manufactures units in two processes: Production and Finishing. All direct materials are added at...

Hamilton, Inc. manufactures units in two processes: Production and Finishing. All direct materials are added at the beginning of the Production process, while conversion costs are incurred evenly throughout the period for both Production and Finishing. Hamilton employs three inspectors: Kasey, Chad, and Lexi. Kasey inspects direct materials before they are added to Production (two pieces of direct materials per unit). Chad inspects units when the Production process is finished, after which they are immediately transferred to Finishing. Lexi inspects units at the end of the Finishing process. This period, none of the materials or units failed inspection. At the beginning of the period, 6,000 units had only "Inspected by Kasey" tags on them (these units were 70% complete), and 3,200 units had "Inspected by Kasey" and "Inspected by Chad" tags on them (these units were 60% complete). At the end of the period, 9,000 units had only "Inspected by Kasey" tags on them (these units were 50% complete). 1,800 units had only "Inspected by Kasey" and "Inspected by Chad" tags on them (these units were 90% complete), and 19,900 units had tags from all three inspectors on them (these units were 100% complete).

Required:
a. Using the weighted-average method, determine the number of physical units in beginning Work in Process in Production during the period.

b. Using the weighted-average method, determine the number of physical units started in Production during the period.

c. Using the weighted-average method, determine the number of physical units transferred from Production to Finishing during the period.



d. Using the weighted-average method, determine the number of physical units in ending Work in Process in Production during the period.



e. Using the weighted-average method, determine the number of physical units in beginning Work in Process in Finishing during the period.



f. Using the weighted-average method, determine the number of physical units in ending Work in Process in Finishing during the period.



g. Using the weighted-average method, determine the number of physical units completed in Finishing during the period.



h. Using the weighted-average method, determine the number of equivalent units for direct materials for Production

i. Using the weighted-average method, determine the number of equivalent units for conversion for Production



j. Using the weighted-average method, determine the number of equivalent units for direct materials for Finishing



k. Using the weighted-average method, determine the number of equivalent units for conversion for Finishing

Solutions

Expert Solution

Solution:

a. Number of physical units in opening WIP in production department = Unit having "inspected by Kasey" tag on them at begining = 6000 units

b. Number of physcial unit started in production = Unit transferred to finishing + Closing WIP - Opening WIP

Unit transferred to finishing = Unit completed in finishing + Closing WIP in finishing - Opening WIP in finishing

= 19900 + 1800 - 3200 = 18500 units

Number of physcial unit started in production = 18500 + 9000 - 6000 = 21500 unit

c. Phyiscal unit transferred from production to finishing = 18500 units

d. Physical units in ending WIP in production department = Unit having "inspected by Kasey" tag on them at the end of period = 9000 units

e. Number of physical units in opening WIP in finishing department = Unit having "inspected by Kasey" & "Inspected by Chad" tag on them at begining = 3200 units

f. Physical units in ending WIP in finishing department = Unit having "inspected by Kasey" & "Inspected by chad" tag on them at the end of period = 1800 units

g. Number of physical units completed in finishing = Unit having "inspected by Kasey" , "Inspected by chad" & " inspected by Lexi" tag on them = 19900 units

h& i:

Computation of Equivalent unit of Production - Production Department
Particulars	Physical Units	Material	Conversion
Unit completed & Transferred out	18500	18500	18500
Closing WIP:	9000
Material (100%)		9000
Conversion (50%)			4500

Equivalent units of production	27500	27500	23000

Number of equivalent units for direct material in production = 27500

Number of equivalent units for conversion in production = 23000

j&k:

Computation of Equivalent unit of Production - Finshing Department
Particulars	Physical Units	Material	Conversion
Unit completed & Transferred out	19900	19900	19900
Closing WIP:	1800
Material (100%)		1800
Conversion (90%)			1620

Equivalent units in finishing	21700	21700	21520

Number of equivalent units for direct material in finishing = 21700

Number of equivalent units for conversion in finishing = 21520

ekkarill92 answered 8 months ago

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