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

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2.

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

 

 

Materials

Conversion

  Cost per equivalent unit

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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

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  Cost of units completed and transferred out

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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:

 

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  Total cost to be accounted for

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  Costs accounted for as follows:

 

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  Total cost accounted for

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