The Matsui Lubricants
plant uses the weighted-average method to account for its work-in-process
inventories. The accounting records show the following information for a
particular day:
Beginning
WIP inventory
Direct
materials
$
1,940
Conversion
costs
476
Current
period costs
Direct
materials
22,130
Conversion
costs
12,946
Quantity information
is obtained from the manufacturing records and includes the following:
Beginning inventory
560
units (50%
complete as to materials,
63% complete as
to conversion)
Current
period units started
3,700
units
Ending
inventory
1,100
units (50%
complete as to materials,
10% complete as
to conversion)
Required:
Compute the cost per
equivalent unit for direct materials and conversion costs using the
weighted-average method.(Round your answers to 2 decimal places.)
2
The Matsui Lubricants
plant uses the weighted-average method to account for its work-in-process
inventories. The accounting records show the following information for a
particular day:
Beginning
WIP inventory
Direct
materials
$
1,957
Conversion
costs
552
Current
period costs
Direct
materials
22,500
Conversion
costs
13,200
Quantity information
is obtained from the manufacturing records and includes the following:
Beginning
inventory
590
units (58%
complete as to materials,
51% complete as
to conversion)
Current
period units started
4,100
units
Ending
inventory
1,100
units (41%
complete as to materials,
19% complete as
to conversion)
Required:
Compute the cost of
goods transferred out and the ending inventory using the weighted-average
method.(Do not round your
intermediate calculations. Round your final answers to nearest whole dollar
value.)
3
Pacific Ink had
beginning work-in-process inventory of $371,740 on October 1. Of this amount,
$150,760 was the cost of direct materials and $220,980 was the cost of
conversion. The 21,000 units in the beginning inventory were 40 percent
complete with respect to both direct materials and conversion costs.
During
October, 48,000 units were transferred out and 13,000 remained in ending
inventory. The units in ending inventory were 70 percent complete with
respect to direct materials and 40 percent complete with respect to conversion
costs. Costs incurred during the period amounted to $1,170,700 for direct
materials and $1,515,320 for conversion.
Required:
Compute the cost per
equivalent unit for direct materials and for conversion costs using the
weighted-average method. (Round your answers to 2 decimal places.)
4
Pacific Ink had
beginning work-in-process inventory of $809,670 on October 1. Of this
amount, $438,600 was the cost of direct materials and $371,070 was the cost
of conversion. The 24,000 units in the beginning inventory were 30 percent
complete with respect to both direct materials and conversion costs.
During
October, 54,000 units were transferred out and 14,000 remained in ending
inventory. The units in ending inventory were 75 percent complete with
respect to direct materials and 35 percent complete with respect to
conversion costs. Costs incurred during the period amounted to $1,754,400
for direct materials and $2,102,730 for conversion.
Required:
Compute the costs of
goods transferred out and the ending inventory using the weighted-average
method.(Do not round your
intermediate calculations. Round your final answers to nearest whole dollar
value.)
Answer 1
Beginning WIP 560
add: units started 3,700
Total units 4,260
less: ending WIP 1,100
Units completed 3,160
Direct Materials
Units completed 3,160 3,160
(3,160 * 100 % complete)
Ending WIP 1,100 550
(1,100 * 50 % complete)
Equivalent Units 3,710
Cost per equivalent unit
Direct Materials Conversion Costs
Beginning WIP $ 1,940 $ 476
add: current period costs $ 22,130 $ 12,946
Total cost $ 24,070 $ 13,422
divide by equivalent units 3,710 3,270
Cost per equivalent unit $ 6.49 $ 4.10
Answer 2
Beginning WIP 590
add: units started 4100
Total units 4690
less: ending WIP 1100
Units completed 3590
Direct Materials
Units completed 3,590 3,590
(3,590 * 100 % complete)
Ending WIP 1,100 451
(1,100 * 41 % complete)
Equivalent Units 4,041
Cost per equivalent unit
Direct Materials Conversion Costs
Beginning WIP $ 1,957 $ 552
add: current period costs $ 22,500 $ 13,200
Total cost $ 24,457 $ 13,752
divide by equivalent units 4,041 3,799
Cost per equivalent unit $ 6.05 $ 3.62
Cost of goods transferred out
Direct Materials Conversion Costs
Units 3,590 3,590
multiply by Cost per equivalent unit $ 6.05 $ 3.62
$ 21,727 $ 12,995
Cost of ending WIP
Direct Materials Conversion Costs
Units 451 209
multiply by Cost per equivalent unit $ 6.05 $ 3.62
$ 2,730 $ 757
Answer 3
Direct Materials
Transferred out 48,000 48,000
(48,000 * 100% complete)
Ending WIP 13,000 9,100
(13,000 * 70% complete)
57,100
Direct Materials Conversion Costs
Beginning WIP $ 150,760 $ 220,980
add: current period costs $ 1,170,700 $ 1,515,320
Total costs $ 1,321,460 $ 1,736,300
divide by equivalent units 57,100 53,200
Cost per equivalent unit $ 23.14 $ 32.64
Answer 4
Direct Materials
Transferred out 54,000 54,000
(54,000 * 100% complete)
Ending WIP 14,000 10,500
(14,000 * 75% complete)
64,500
Direct Materials Conversion Costs
Beginning WIP $ 438,600 $ 371,070
add: current period costs $ 1,754,400 $ 2,102,730
Total costs $ 2,193,000 $ 2,473,800
divide by equivalent units 64,500 58,900
Cost per equivalent unit $ 34.00 $ 42.00
Cost of goods transferred out
Direct Materials Conversion Costs
Units 54,000 54,000
multiply by Cost per equivalent unit $ 34 $ 42
$ 1,836,000 $ 2,268,000
Cost of ending WIP
Direct Materials Conversion Costs
Units 10,500 4,900
multiply by Cost per equivalent unit $ 34 $ 42
$ 357,000 $ 205,800
Conversion Costs
3,160
(3,160 * 100 % complete)
110
(1,100 * 10 % complete)
3,270
Conversion Costs
3,590
(3,590 * 100 % complete)
209
(1,100 * 19 % complete)
3,799
451 209 3486.108
6.052215 3.6199
2729.549 756.5591
$ 34,723
590
4100 3590 3590
4690 1100 451
1100 4041
$ 3,486 3590
Conversion Costs
48,000
(48,000 * 100% complete)
5,200
(13,000 * 40% complete)
53,200
Conversion Costs
54,000
(54,000 * 100% complete)
4,900
(14,000 * 35% complete)
58,900
$ 4,104,000
$ 562,800
3590
209
3799
