Question

Materials are added at the beginning of the production process at Campo Company. The following information...

Materials are added at the beginning of the production process at Campo Company. The following information on the physical flow of units is available for the month of November:

Beginning work in process (48% complete) 45,000
Started in November 600,000
Completed in November and transferred out 560,000
Ending work in process (60% complete) 85,000

Cost data for November show the following:

Beginning WIP inventory
Direct materials costs $ 27,300
Conversion costs 52,700
Current period costs
Direct materials costs $ 310,950
Conversion costs 1,269,550

Required:

a. Compute the cost equivalent units for the conversion cost calculation assuming Campo uses the weighted-average method.

b. Compute the cost per equivalent unit for materials and conversion costs for November. (Round your answers to 2 decimal places.)

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Homework Answers

Answer #1

a. Compute the cost equivalent units for the conversion cost calculation assuming Campo uses the weighted-average method.

Equivalent unit for material = 560000+85000 = 645000

Equivalent unit for conversion = 560000+(85000*60%) = 611000

b. Compute the cost per equivalent unit for materials and conversion costs for November. (Round your answers to 2 decimal places.)

Cost per equivalent unit of material = (27300+310950)/645000 = 0.52

Cost per equivalent unit of conversion = (52700+1269550)/611000 = 2.16

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