Business, 18.01.2021 14:00 hcpsharrissy2952

Pablo Company calculates the cost for an equivalent unit of production using costing. Data For June

Work in process inventory, June 1: 30,000 units
Direct materials: 100% complete 60,000
Conversation: 40% complete 25,000
Balance in work process 85,000
Units started during June 70,000
Units completed and transferred out 70,000
Work in process inventory, June 30 30,000
Direct materials: 100% complete
Conservation: 80% complete
Costs incurred during June
Direct materials 122,500

Conversation costs:
Direct labor 119,720
Applied overhead 179,580
Total conversation costs 299,300

Required:
Compute the costs per equivalent unit for both the weighted- average and FIFO methods

Answers: 3

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Answers

Answer from: gunnatvinson

The computation of the costs per equivalent unit under the weighted-average and FIFO methods are as follows:

Weighted-Average FIFO

Direct Conversion Direct Conversion

Materials Costs Materials Costs

Cost per equivalent unit $1.825 $3.45 $2.607 $3.955

Data and Calculations:

Work in process inventory, June 1: 30,000 units

Direct materials: 100% complete $60,000

Conversion: 40% complete $25,000

Balance in work process = $85,000

Units started during June 70,000

Units completed and transferred out 70,000

Work in process inventory, June 30 30,000

Direct materials: 100% complete

Conversion: 80% complete

Costs incurred during June

Direct materials = $122,500

Conversion costs:

Direct labor = $119,720

Applied overhead = $179,580

Total conversation costs = $299,300

Total Costs of Production:

Direct Conversion Total

Materials Costs Costs

Beginning inventory $60,000 $25,000 $85,000

Costs added during period 122,500 299,300 421,800

Total costs of production $182,500 $324,300 $506,800

Equivalent units of production (weighted-average)

Physical Direct Conversion

Units Materials Costs

Beginning inventory 30,000 0 0

Units transferred out 70,000 70,000 (100%) 70,000 (100%)

Ending inventory 30,000 30,000 (100%) 24,000 (80%)

Total equivalent units 100,000 94,000

Cost per equivalent unit $1.825 $3.45

($182,500/100,000) ($324,300/94,000)

Equivalent units of production (FIFO)

Physical Direct Conversion

Units Materials Costs

Beginning inventory 30,000 0 18,000 (60%)

Units started & completed 40,000 40,000 (100%) 40,000 (100%)

Ending inventory 30,000 30,000 (100%) 24,000 (80%)

Total equivalent units 70,000 82,000

Cost per equivalent unit $2.607 $3.955

($182,500/70,000) ($324,300/82,000)

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Answer from: JeroMii

$5.275 & $5.40

Explanation:

According to the scenario, computation of the given data are as follows:

Weighted Average Method :

Units Physical Direct Conversion

Completed & transferred 70,000 70,000 70,000

Ending WIP 30,000 30,000 24,000

( 30,000 × 80%)

Equivalent production Unit 100,000 100,000 94,000

So, Cost per equivalent unit under weighted average method can be calculated as:

Direct material Conversion Total cost

$1.825 $3.45 $5.275

(60,000 + 122,500) (25000+299300)

= (182,500 ÷ 100.000) =(324300 ÷ 94,000)

FIFO Method

Units Physical Direct Conversion

Beginning WIP 30,000 0 18,000

(30,000 × 0%) (30,000 × 60%)

Started & completed 40,000 40,000 40,000

Ending WIP 30,000 30,000 24,000

(30,000 × 80%)

Equivalent production Unit 100,000 70,000 82,000

So, Cost per equivalent unit under FIFO method can be calculated as:

Direct material Conversion Total cost

$1.75 $3.65 $5.40

(122,500 ÷ 70,000) (299,300 ÷ 82,000)

Answer from: Quest

88 because 4 plus 4 equals 8. 40 plus 40 equals 80. 80 plus 8 equals 88

Answer from: Quest

yup the answer is

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Pablo Company calculates the cost for an equivalent unit of production using costing. Data For June...

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