1) On January 1st, 2019, NHL Inc. had a Beginning Work-in-Process balance of $20,000 ($10,000 of Direct Materials and $10,000 of Conversion) which consisted of 10,000 units which were 40% complete with respect to conversion costs.
During January, NHL started production on an additional 40,000 units and incurred $30,000 in Materials and $50,000 in Conversion costs.
NHL's Ending Work-In-Process consisted of 10,000 units which were 50% complete with respect to conversion costs.
NHL produces a single product. All direct materials are added at the start of the production process while conversion costs are incurred uniformly.
NHL uses a weighted-average process costing system.
What is the value of NHL's Finished Goods Inventory at the end of January?
2) On January 1st, 2019, NHL Inc. had a Beginning Work-in-Process balance of $30,000 ($10,000 of Direct Materials and $20,000 of Conversion) which consisted of 10,000 units which were 50% complete with respect to conversion costs.
During January, NHL started production on an additional 20,000 units and incurred $50,000 in Materials and $55,000 in Conversion costs.
NHL's Ending Work-In-Process consisted of 8,000 units which were 50% complete with respect to conversion costs. NHL produces a single product.
All direct materials are added at the start of the production process while conversion costs are incurred uniformly.
NHL uses a weighted-average process costing system.
What was the value of NHL's Ending Finished Goods Inventory, assuming that the company sold half of its completed output during the year?
3) On January 1st, 2019, NHL Inc. had a Beginning Work-in-Process balance of $50,000 ($40,000 of Direct Materials and $10,000 of Conversion) which consisted of 15,000 units which were 40% complete with respect to conversion costs.
During January, NHL started production on an additional 20,000 units and incurred $30,000 in Materials and $50,000 in Conversion costs.
NHL's Ending Work-In-Process consisted of 6,000 units which were 80% complete with respect to conversion costs.
NHL produces a single product. All direct materials are added at the start of the production process while conversion costs are incurred uniformly.
NHL uses a weighted-average process costing system.
What is NHL's cost per equivalent unit with respect to materials costs for January?
1) Unit transferred out = 10000+40000-10000 = 40000
Equivalent unit of material = 40000+(10000*100%) = 50000
Equivalent unit of conversion = 40000+(10000*50%) = 45000
Cost per equivalent unit of material = (10000+30000)/50000 = 0.80
Cost per equivalent unit of conversion = (10000+50000)/45000 = 1.33
Finished goods Inventory at the end of January = 2.133*40000 = 85333
2) Equivalent unit of material = 22000+(8000*100%) = 30000
Equivalent unit of conversion = 22000+(8000*50%) = 26000
Cost per equivalent unit of material = (10000+50000)/30000 = 2
Cost per equivalent unit of conversion = (20000+55000)/26000 = 2.88
Finished goods inventory = 4.88*22000 = 107462
Cost of goods sold = 107462/2 = 53731
3) Equivalent unit of material = 29000+(6000*100%) = 35000
Cost per equivalent unit of material = (40000+30000)/35000 = 2
Get Answers For Free
Most questions answered within 1 hours.