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Chapter 18: Q.18-9SE (page 1008)

Question: Refer to the data in Short Exercise S18-8 and your results for equivalent units of production. The Mixing Department of Complete Foods has direct materials costs of \(46,500 and conversion costs of \)23,540 for October.

Compute the cost per equivalent unit of production for direct materials and for

conversion costs.

Short Answer

Expert verified

Answer:

The cost per equivalent unit of production for direct materials is $0.75 and for the conversion cost is $0.55

Step by step solution

01

Cost per equivalent unit of production for direct material

CostperEUPfordirectmaterial=TotaldirectMaterialcostEqualentunitofproductiondirectmaterial=$46,50062,000=$0.75

02

Cost per equivalent unit of production for conversion cost


CostperEUPforconversioncost=TotalconversioncostEqualentunitofproductionforconversioncost=$23,54042,800=$0.55

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Most popular questions from this chapter

Question: The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were completed and transferred to the next department, and 24,000 units were 20% complete. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the mixing process and the company uses the weighted-average method.

Compute the total equivalent units of production for direct materials and

conversion costs for October.

Collins Company has the following data for the Assembly Department for August:

Unit in process at the beginning of august

900

Units started in august

2,000

Units completed and transferred

2,100

Units in process at the end of august

800

Conversion costs are added evenly throughout the process. The company uses the weighted-average method. Compute the equivalent units of production for direct materials and conversion costs for each independent scenario:

1. Units in process at the end of August are 20% complete; materials are added at the beginning of the process.

2. Units in process at the end of August are 80% complete; materials are added at the beginning of the process.

3. Units in process at the end of August are 20% complete; materials are added at the end of the process.

4. Units in process at the end of August are 80% complete; materials are added at the halfway point.

Describe the three groups of units that must be accounted for when using the FIFO method.

Question: Department 1 is transferring units that cost $40,000 to Department 2. Give the journal entry.

Question: Cadwell manufactures cell phones. The conversion costs to produce cell phones for November are added evenly throughout the process in the Assembly Department. The company uses the weighted-average method. For each of the following separate assumptions, calculate the equivalent units of production for conversion costs in the ending Work-in-Process Inventory for the Assembly Department:

1. 12,000 cell phones were 60% complete

2. 21,000 cell phones were 40% complete
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