Question

The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs...

The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 60 percent complete as to ending work-in-process inventory. Information about conversion costs follows.

Units Conversion Costs
WIP at December 1 (80% complete) 112,000 $ 443,520
Units started and costs incurred during December 552,000 2,628,480
Units completed and transferred to next department during December 412,000 ?

The Oils Division uses FIFO.

Required:

a-1. Compute the equivalent units for conversion costs.

a-2. Compute the cost per equivalent unit for conversion costs.

a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31?

b. What were the conversion costs per equivalent unit produced last period and this period, respectively?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Units started and completed = 412000-112000 = 300000 units
Ending WIP = 112000+552000-412000 = 252000

a-1 Equivalent units = Beginning WIP x (100% - Completion) + units started and completed + Ending WIP x Completion
= 112000 x 20% + 300000 + 252000 x 60% = 473600 units

a-2 Cost per equivalent unit = $2628480 / 473600 = $5.55 per unit

a-3 Ending WIP COnversion = 252000 x 60% x 5.55 = $839160

b
Conversion cost per unit last period = $443520 / (112000x80%) = $4.95 per unit
Cost per equivalent unit this period = $2628480 / 473600 = $5.55 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 following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs...
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 50 percent complete as to ending work-in-process inventory. Information about conversion costs follows. Units Conversion Costs WIP at December 1 (80% complete) 102,000 $ 395,760 Units started and costs incurred during December 542,000 2,229,070 Units completed and transferred to next department during December 402,000 ? The Oils Division uses FIFO. Required:...
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs...
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 60 percent complete as to ending work-in-process inventory. Information about conversion costs follows. Units Conversion Costs WIP at December 1 (80% complete) 109,000 $ 427,280 Units started and costs incurred during December 549,000 2,544,480 Units completed and transferred to next department during December 409,000 ? The Oils Division uses FIFO. Required:...
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs...
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 50 percent complete as to ending work-in-process inventory. Information about conversion costs follows: Units Conversion Costs WIP at December 1 (80% complete) 20,000 $ 232,200 Units started and costs incurred during December 108,000 1,306,800 Units completed and transferred to next department during December 80,000 ? The Oils Division uses FIFO. Required:...
Nader, Inc., has the following information available: Costs from Beginning Inventory Costs from Current Period Direct...
Nader, Inc., has the following information available: Costs from Beginning Inventory Costs from Current Period Direct materials $2,300 $ 21,252 Conversion costs 6,200 150,536 At the beginning of the period, there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the current period, 4,300 units were started and completed. Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100...
Carmelita Inc., has the following information available : Costs from Beginning Inventory Costs from current Period...
Carmelita Inc., has the following information available : Costs from Beginning Inventory Costs from current Period Direct materials $4,700 $23,800 Conversion costs 5,100 140,400 At the beginning of the period, there were 500 units in process that were 43% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,100 units were started and completed. Ending inventory contained 300 units that were 26% complete as to conversion costs and 100% complete as to materials...
Carmelita Inc., has the following information available: Costs from Beginning Inventory Costs from current Period Direct...
Carmelita Inc., has the following information available: Costs from Beginning Inventory Costs from current Period Direct materials $5,800 $25,300 Conversion costs 6,300 158,600 At the beginning of the period, there were 400 units in process that were 40% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,500 units were started and completed. Ending inventory contained 400 units that were 32% complete as to conversion costs and 100% complete as to materials costs....
Carmelita Inc., has the following information available: Costs from Beginning Inventory Costs from current Period Direct...
Carmelita Inc., has the following information available: Costs from Beginning Inventory Costs from current Period Direct materials $4,900 $29,300 Conversion costs 5,700 150,800 At the beginning of the period, there were 600 units in process that were 43% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,200 units were started and completed. Ending inventory contained 400 units that were 34% complete as to conversion costs and 100% complete as to materials costs....
For each of the following independent cases, use FIFO costing to determine the information requested. Required:...
For each of the following independent cases, use FIFO costing to determine the information requested. Required: a. In the beginning inventory, 4,600 units were 30 percent complete with respect to materials. During the period, 45,000 units were transferred out. Ending inventory consisted of 7,800 units that were 80 percent complete with respect to materials. How many units were started and completed during the period? b. At the start of the period, 4,000 units were in the work-in-process inventory; 3,100 units...
Carmelita Inc. has the following information available: Costs from Beginning Inventory Costs from Current Period Direct...
Carmelita Inc. has the following information available: Costs from Beginning Inventory Costs from Current Period Direct materials $4,500 $25,500 Conversion costs 6,700 156,100 At the beginning of the period, there were 600 units in process that were 41% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,500 units were started and completed. Ending inventory contained 300 units that were 34% complete as to conversion costs and 100% complete as to materials costs....
Carmelita Inc., has the following information available: Costs from Beginning Inventory Costs from current Period Direct...
Carmelita Inc., has the following information available: Costs from Beginning Inventory Costs from current Period Direct materials 2,000 $ 22,252 Conversion costs 6,200   150,536 At the beginning of the period, there were 500 units in process that were 60% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,500 units were started and completed. Ending inventory contained 340 units that were 30% complete as to conversion costs and 100% complete as to materials...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT