Question

A firm that uses weighted average process costing has the following data: Beginning Inventory (2,000 physical...

A firm that uses weighted average process costing has the following data:

Beginning Inventory (2,000 physical units):

Direct Materials: $2,500 100% complete

Conversion: $4,000 80% complete

Ending Inventory (8,000 physical units):

Direct Materials: 100% complete

Conversion: 0% complete

Current Costs:

Direct Materials: $45,500

Conversion: $76,000

Units started during the period 46,000

Units completed and transferred to finished goods 40,000

Required: Calculate the cost per unit for direct materials and conversion costs.

  1. DIRECT MATERIALS (5 pts.): ___________________

CONVERSION COSTS (5 pts):

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Cost per unit of direct material

Total cost of direct material = 2500 + 45500

= 48000

Number of units of direct material = 2000 + 46000

= 48000

Cost per unit of direct material = 48000 / 48000

= $ 1 per unit

Cost per unit of conversion

Total cost of conversion = 4000 + 76000

= 80000

Equivalent units in beginning inventory = 2000 × 80%

= 1600

Equivalent units in production = 38000 + ( 2000 × 20%)

= 38400

Total units of conversion = 40000

Conversion cost per unit = 80000 / 40000

= $ 2 per unit

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Lakeside Company uses a weighted-average process costing system. The following data are available: Beginning inventory...
The Lakeside Company uses a weighted-average process costing system. The following data are available: Beginning inventory 1,000 units (100% complete as to materials and 50% complete as to labor and overhead); Units started in production 19,000; Units finished during the period 16,000; Units in process at the end of the period (100% complete as to materials and 25% complete as to labor and overhead) 4,000; Costs in beginning inventory were materials of $1,500 and Labor and overhead costs $1,000; Cost...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 26,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 112,000. Units completed and transferred out: 138,000. Ending Inventory: 30,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $44,000. Costs in beginning Work in Process -...
14. Willow Corp uses a process costing system. Beginning inventory for January consisted of 1,000 units...
14. Willow Corp uses a process costing system. Beginning inventory for January consisted of 1,000 units that were 60% completed. During January, 10,500 units were completed. On January 31, the inventory consisted of 500 units that were 70% completed. How many units were started during January? . Maplewood Co. uses process costing to account for the production of canned energy drinks. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process....
A firm that uses weighted average process costing has 400 units in Beginning Inventory that are...
A firm that uses weighted average process costing has 400 units in Beginning Inventory that are 80% complete. During the period, an additional 8000 units are started. 600 units are left in Ending Inventory at the end of the period, which are 80% complete. Beginning Inventory has $11,080 allocated to it, and current costs are $80,000. All inputs are added simultaneously. Required: Calculate the costs allocated to Finished Goods and Ending Inventory. FINISHED GOODS(5 pts.)::                  ___________________ ENDING INVENTORY(5 pts.):___________________
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 33,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 124,000. Units completed and transferred out: 157,000. Ending Inventory: 33,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $50,000. Costs in beginning Work in Process -...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 39,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 138,000. Units completed and transferred out: 177,000. Ending Inventory: 37,000 units, 100% complete as to materials and 30% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $57,000. Costs in beginning Work in Process -...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 37,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 134,000. Units completed and transferred out: 171,000. Ending Inventory: 36,000 units, 100% complete as to materials and 35% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $55,000. Costs in beginning Work in Process -...
Richards Corporation uses the weighted-average method of process costing. The following information is available for October...
Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 95,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 280,000. Units completed and transferred out: 375,000. Ending Inventory: 37,500 units, 30% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $52,200. Costs in beginning Work in Process -...
Richards Corporation uses the weighted-average method of process costing. The following information is available for October...
Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process -...
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products....
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for the company's first production process September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Work in process inventory, September 1 (1,500 units, 100% complete with respect to direct materials, 70% complete with respect to conversion; consists of $45,800 of direct materials cost, $84,695 conversion cost $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT