3. The inventory at May 1 and the costs charged to Work in Process--Department B Olga Company are as follows: ginning WIP - Dept B, 12,000 units, 60% completed om Department A, 55,000 units started this period rect materials added nversion costs incurred pring May, all direct materials are transferred from Department A, the units in process at mpleted, and of the 55,000 units entering the department, all were completed except 6,00 % completed. Assume inventories are managed by the first-in, first-out method. a) Determine the Cost per Equivalent Units for both Direct Materials and Conve

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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3. The inventory at May 1 and the costs charged to Work in Process--Department B during May for
Olga Company are as follows:
Beginning WIP – Dept B, 12,000 units, 60% completed
From Department A, 55,000 units started this period
Direct materials added
$ 62,400
115,500
523,160
Conversion costs incurred
During May, all direct materials are transferred from Department A, the units in process at May 1 were
completed, and of the 55,000 units entering the department, all were completed except 6,000 units which were
70% completed. Assume inventories are managed by the first-in, first-out method.
a) Determine the Cost per Equivalent Units for both Direct Materials and Conversion Costs for
the month of May.
b) Determine the total cost of production transferred to Department C and provide the journal
entry.
c) What is the ending balance in WIP – Dept. B?
Transcribed Image Text:3. The inventory at May 1 and the costs charged to Work in Process--Department B during May for Olga Company are as follows: Beginning WIP – Dept B, 12,000 units, 60% completed From Department A, 55,000 units started this period Direct materials added $ 62,400 115,500 523,160 Conversion costs incurred During May, all direct materials are transferred from Department A, the units in process at May 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units which were 70% completed. Assume inventories are managed by the first-in, first-out method. a) Determine the Cost per Equivalent Units for both Direct Materials and Conversion Costs for the month of May. b) Determine the total cost of production transferred to Department C and provide the journal entry. c) What is the ending balance in WIP – Dept. B?
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