1. Shyne Incorporated calculates cost for an equivalent unit of production using the weighted-average method. Data for July:Work-in-process inventory, July 1 (38,000 units): Direct materials (96% completed) $ 122,600Conversion (54% completed) 77,050Balance in work in process inventory, July 1 $ 199,650Units started during July 92,000Units completed and transferred 105,600Work-in-process inventory, July 31: Direct materials (96% completed) 24,400Conversion (54% completed) Cost incurred during July: Direct materials $ 182,000Conversion costs 290,000 a. The cost of goods completed and transferred out under the weighted-average method is calculated to be: 2. Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May: Tons of Pulp Percent CompletedMaterials ConversionWork-in-Process Inventory, May 1 3,000 100% 50%Started during May 14,000 Units to account for 17,000 Units from beginning Work-in-Process, which were completed and transferred out during May 3,000 Started and completed during May 8,400 Work-in-Process Inventory, May 31 5,600 100% 50%Total units accounted for 17,000 The following cost data are available: Work-in-Process Inventory, May 1 Direct materials $ 47,640Conversion 116,202Costs incurred during May Direct materials 217,560Conversion 255,270 a. Calculate the equivalent units of direct materials and conversion during May. Use the FIFO method. b. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the FIFO method.
1. Shyne Incorporated calculates cost for an equivalent unit of production using the weighted-average method.
Data for July:
Work-in-process inventory, July 1 (38,000 units):
Direct materials (96% completed) $ 122,600
Conversion (54% completed) 77,050
Balance in work in process inventory, July 1 $ 199,650
Units started during July 92,000
Units completed and transferred 105,600
Work-in-process inventory, July 31:
Direct materials (96% completed) 24,400
Conversion (54% completed)
Cost incurred during July:
Direct materials $ 182,000
Conversion costs 290,000
a. The cost of goods completed and transferred out under the weighted-average method is calculated to be:
2. Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May:
Tons of Pulp Percent Completed
Materials Conversion
Work-in-Process Inventory, May 1 3,000 100% 50%
Started during May 14,000
Units to account for 17,000
Units from beginning Work-in-Process, which were completed and transferred out during May 3,000
Started and completed during May 8,400
Work-in-Process Inventory, May 31 5,600 100% 50%
Total units accounted for 17,000
The following cost data are available:
Work-in-Process Inventory, May 1
Direct materials $ 47,640
Conversion 116,202
Costs incurred during May
Direct materials 217,560
Conversion 255,270
a. Calculate the equivalent units of direct materials and conversion during May. Use the FIFO method.
b. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the FIFO method.
Step by step
Solved in 2 steps
