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

$