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 (58% complete)||65,000|
|Started in November||590,000|
|Completed in November and transferred out||565,000|
|Ending work in process (70% complete)||90,000|
Cost data for November show the following.
|Beginning WIP inventory|
|Direct materials costs||$||27,300|
|Current period costs|
|Direct materials costs||$||340,950|
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.
|Required 1 :|
|(+) Ending inventory equivalent units [ Ending inventory units * % Completion ]||90000||63000|
|Equivalent units of production||655000||628000|
|Equivalent units for conversion cost||628000|
|Required 2 :|
|Beginning work in process cost||27300||55700|
|(+) Current period costs||340950||1219550|
|(/) Equivalent units of production||655000||628000|
|Cost per equivalent unit||0.56||2.03|
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