Question

The following information applies to the questions displayed below.] The Plastic Flowerpots Company has two manufacturing departments, molding and packaging. At the beginning of the month, the molding department has 2,500 units in inventory, 70% complete as to materials. During the month, the molding department started 20,500 units. At the end of the month, the molding department had 3,750 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department. Cost information for the molding department for the month follows: Beginning work in process inventory (direct materials) $ 1,700 Direct materials added during the month 32,900 Using the weighted-average method, compute the molding department’s (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month. (Round "cost per equivalent unit of production" to 2 decimal places.)

Answer 1

Using the weighted-average method, compute the molding department’s

(a) equivalent units of production for materials

	Whole unit	%	EUP-Material
Units transferred out	19250	100%	19250
Ending work in process	3750	80%	3000
Equivalent unit of production	23000		22250

(b) cost per equivalent unit of production for materials for the month. (Round "cost per equivalent unit of production" to 2 decimal places.)

Cost per equivalent unit of production = (1700+32900)/22250 = $1.56 per equivalent unit