Question
|
The PVC Company manufactures a high-quality plastic pipe thatgoes through three processing stages prior to completion. |
|
Information on work inthe first department, Cooking, is given below for May: |
|
|
|
|
|
Productiondata: |
|
|
|
Poundsin process, May 1: materials 100% complete; conversion 90%complete |
|
84,000 |
|
Poundsstarted into production during May |
|
490,000 |
|
Poundscompleted and transferred to the next department |
|
? |
|
Poundsin process, May 31: materials 60% complete;conversion 40% complete |
|
44,000 |
|
Cost data: |
|
|
|
Work inprocess inventory, May 1: |
|
|
|
Materials cost |
$ |
130,200 |
|
Conversioncost |
$ |
21,100 |
|
Costadded during May: |
|
|
|
Materials cost |
$ |
676,580 |
|
Conversioncost |
$ |
115,800 |
|
|
||
|
The company uses theweighted-average method. |
|
Required: |
|
1. |
Compute the equivalent units ofproduction. |
|
|
Materials |
Conversion |
|
Equivalent units ofproduction |
|
|
|
|
||
|
2. |
Compute the costs per equivalent unit for the month.(Round your answers to 2 decimal places. Omit the “$” signin your response.) |
|
|
Materials |
Conversion |
|
Cost per equivalentunit |
$ |
$ |
|
|
||
|
3. |
Determine the cost of ending work in process inventory and ofthe units transferred out to the next department. (Omit the”$” sign in your response.) |
|
|
Materials |
Conversion |
Total |
|
Cost of ending workin process inventory |
$ |
$ |
$ |
|
Cost of unitscompleted and transferred out |
$ |
$ |
$ |
|
|
|||
|
4. |
Prepare a cost reconciliation report for the month.(Omit the “$” sign in your response.) |
|
Cost Reconciliation |
|
|
Costs to beaccounted for: |
|
|
(Click to select)Cost ofbeginning work in process inventoryCost of ending work in processinventoryCost of units completed and transferred out |
$ |
|
(Click to select)Cost of unitscompleted and transferred outCosts added to production during theperiodCost of ending work in process inventory |
|
|
|
|
|
Total cost to beaccounted for |
$ |
|
|
|
|
Costs accounted foras follows: |
|
|
(Click to select)Cost of endingwork in process inventoryCost of beginning work in processinventoryCosts added to production during the period |
$ |
|
(Click to select)Cost of unitscompleted and transferred outCost of beginning work in processinventoryCosts added to production during the period |
|
|
|
|
|
Total cost accountedfor |
$ |
|
|
|
|
|
|
