Question
In: Accounting
Williams Company computed its cost per equivalent unit for direct materials to be $2.90 and its...
Williams Company computed its cost per equivalent unit for direct materials to be $2.90 and its cost per equivalent unit for conversion to be $3.45. A total of 203,000 units of product were completed and transferred out as finished goods during the month. The ending Work in Process inventory consists of 33,000 equivalent units of direct materials and 33,000 equivalent units of conversion costs. The amount that should be reported in ending Work in Process Inventory is:
Solutions
Expert Solution
Answer)
Calculation of amount to be reported in ending work in process inventory
Ending work in process inventory = (Number of equivalent units of direct materials X cost per equivalent unit for direct material) + (Number of equivalent units of conversion costs X cost per equivalent unit for direct material)
= (33,000 equivalent units X $ 2.90 per equivalent unit) + (33,000 equivalent units X $ 3.45 per equivalent unit)
= $ 95,700 + $ 113,850
= $ 209,550
Therefore amount reported in ending work in process inventory is $ 209,550.
ekkarill92 answered 2 years agoRelated Solutions
Compute the cost per equivalent unit for direct materials and conversion for the month.
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Cost per equivalent unit is kept separate for direct materials and conversion costs because A. the...
Cost per equivalent unit is kept separate for direct
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The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve...
The costs per equivalent unit of direct materials and conversion
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Question A:
The costs per equivalent unit of direct materials and conversion
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Compute the equivalent units for direct materials and conversion
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2.
Compute the cost per equivalent unit.
3.
Assign the costs to units completed and transferred out and
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4.
Record the journal entry for the costs transferred out of the
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5.
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