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

Show answers

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)

Learn more: link

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

Domain is example and subdomain is www.

Answer from: Quest

The correct answer is "a.grassroots movements".

Another question on Business

Business, 22.06.2019 14:30

Turtle corporation produces and sells a single product. data concerning that product appear below: per unit percent of sales selling price $ 150 100 % variable expenses 75 50 % contribution margin $ 75 50 % the company is currently selling 5,600 units per month. fixed expenses are $194,000 per month. the marketing manager believes that a $5,300 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. what should be the overall effect on the company's monthly net operating income of this change?

Answers: 1

Answer

Business, 22.06.2019 15:00

Which of the following characteristics are emphasized in the accounting for state and local government entities? i. revenues should be matched with expenditures to measure success or failure of the government entity. ii. there is an emphasis on expendability of resources to accomplish objectives. a. i only b. ii only c. i and ii d. neither i nor ii

Answers: 2

Answer

Business, 22.06.2019 16:50

According to ceo heidi ganahl, camp bow wow requires a strong and consistent corporate culture to keep all local franchise owners "on the same page" and to follow a common template for the business and brand. this culture could become detrimental over time because: (a) strong consistent cultures are inflexible and incapable of adapting to environmental change (b) strong consistent cultures are too flexible and capable of adapting to environmental change (c) strong consistent cultures don’t perform well in any environment (d) the passing of time provides stability and predictability for businesses

Answers: 2

Answer

Business, 22.06.2019 20:50

Power plants that rely on coal increase the amount of sulfur dioxide that dissolves into the air, eventually increasing the acidity of precipitation. the higher acidity of rain and snow can damage forests by making it more difficult for plants to absorb minerals from the soil. the equations below provide information about the market demand and supply of electricity. there is a constant marginal external cost of $25 per unit of electricity.d: qd= 200 – 2ps: qs=p – 10what quantity of electricity satisfies allocative efficiency in this market? a. 60b. 70c. 50d. 43.3

Answers: 2

Answer

You know the right answer?

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

Questions