Question

 The PVC Company manufactures a high-quality plastic pipe that goesthrough three processing stages prior to completion.

 Information on work inthe first department, Cooking, is given below for May:

 Production data: Pounds in process, May 1:materials 100%       complete; conversion 90%complete 87,000 Pounds started into production duringMay 520,000 Pounds completed and transferredto       the next department ? Pounds in process, May 31:       materials 75% complete;conversion 25% complete 47,000 Cost data: Work in process inventory, May 1: Materials cost \$ 142,100 Conversioncost \$ 63,300 Cost added during May: Materials cost \$ 738,870 Conversioncost \$ 348,360

 The company uses the weighted-average method.

 Required:

 1 Compute the equivalent units of production.

 Materials Conversion Equivalent units of production //<[CDATA[ (function(){window.pagespeed=window.pagespeed||{};var a=window.pagespeed;function b(){}b.prototype.a=function(d,e,c){if(d=document.getElementById(d))if(e=document.getElementById(e))if(c=document.getElementById(c))e.src=d.getAttribute(“src”),c.parentNode.removeChild(c)};b.prototype.inlineImg=b.prototype.a;a.b=function(){a.dedupInlinedImages=new b};a.dedupInlinedImagesInit=a.b;})(); pagespeed.dedupInlinedImagesInit(); //]]>//<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU62','pagespeed_script_3'); //]]>

 2 Compute the costs per equivalent unit for the month. (Round youranswers to 2 decimal places.)

 Materials Conversion Cost per equivalent unit \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU64','pagespeed_script_5'); //]]> \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU66','pagespeed_script_7'); //]]>

 3 Determine the cost of ending work in process inventory and of theunits transferred out to the next department. (Round yourintermediate calculation to 2 decimal places and final answers tothe nearest whole dollar amount.)

 Materials Conversion Total Cost of ending work in process inventory \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU68','pagespeed_script_9'); //]]> \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU610','pagespeed_script_11'); //]]> \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU612','pagespeed_script_13'); //]]> Cost of units completed and transferred out \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU614','pagespeed_script_15'); //]]> \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU616','pagespeed_script_17'); //]]> \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU618','pagespeed_script_19'); //]]>

 4 Prepare a cost reconciliation report for the month. (Round yourintermediate calculation to 2 decimal places and final answers tothe nearest whole dollar amount.)

 Cost Reconciliation Costs to be accounted for: \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU621','pagespeed_script_22'); //]]> //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_qscCqvCVzo20','pagespeed_img_qscCqvCVzo23','pagespeed_script_24'); //]]> //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU625','pagespeed_script_26'); //]]> Total cost to be accounted for \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU627','pagespeed_script_28'); //]]> Costs accounted for as follows: //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_qscCqvCVzo20','pagespeed_img_qscCqvCVzo29','pagespeed_script_30'); //]]> \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU631','pagespeed_script_32'); //]]> //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_qscCqvCVzo20','pagespeed_img_qscCqvCVzo33','pagespeed_script_34'); //]]> //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU635','pagespeed_script_36'); //]]> Total cost accounted for \$ //<[CDATA[ pagespeed.dedupInlinedImages.inlineImg('pagespeed_img_MltnUZrjU61','pagespeed_img_MltnUZrjU637','pagespeed_script_38'); //]]>