6-31 Equivalent Units; Weighted-Average and FIFO Methods Murray Chemical Company refines a variety of petrochemical products. These data are from the firm's Houston plant: Work-in-Process Inventory, September 1 4,000,000 gallons Direct materials 50% completed Conversion 20% completed Units started in process during September 4,850,000 gallons Work-in-Process Inventory, September 30 2,400,000 gallons Direct materials 40% completed Conversion 60% completed Required Compute the equivalent units of direct materials and conversion for the month of September. Use both the weighted-average and the FIFO methods.

6-31 Equivalent Units; Weighted-Average and FIFO Methods Murray Chemical Company refines a variety of petrochemical products. These data are from the firm's Houston plant: Work-in-Process Inventory, September 1 4,000,000 gallons Direct materials 50% completed Conversion 20% completed Units started in process during September 4,850,000 gallons Work-in-Process Inventory, September 30 2,400,000 gallons Direct materials 40% completed Conversion 60% completed Required Compute the equivalent units of direct materials and conversion for the month of September. Use both the weighted-average and the FIFO methods.

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Description: 6-31Equivalent Units; Weighted-Average and FIFO Methods Murray Chemical Company refines a variety of petrochemical products.These data are from the firm's Houston plant:Work-in-Process Inventory, September 14,000,000 gallonsDirect materials50% compl

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cywila Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information: Costs UnitsMaterialsConversionWork in process, Jan. 1 80% complete with respect to conversion costs100,000$100,000$157,500Units started into production500,000 Costs added during the year: Materials $650,000 Conversion $997,500Units completed during the year450,000 Work in process, Dec. 31 60% complete with respect to conversion costs150,000 The company uses the weighted-average cost method in its process costing system. a) Computethe equivalent units of production for materials and for conversion costs. b) Compute the cost per equivalent units for materials and for conversion costs.c) Determine the cost of units completed during the year.d) Determine the cost of ending work-in-process inventory.
Weighted Average Method, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department: Direct Materials Conversion Costs Units completed 25,000 25,000 Units, ending work in process × Percentage complete: 7,000 × 100% 7,000 — 7,000 × 50% — 3,500 Equivalent units of output 32,000 28,500 Costs assigned to beginning work in process: direct materials, $80,000; conversion costs, $15,125. Manufacturing costs incurred during April: direct materials, $80,000; conversion costs, $220,000. Holmes uses the weighted average method. Required: 1. Compute the unit cost for April. If required, round your answer to the nearest cent. $fill in the blank 1 per equivalent unit 2. Determine the cost of ending…
Equivalent Units of Conversion Costs The Rolling Department of Oak Ridge Steel Company had 5,236 tons in beginning work in process inventory (70% complete) on July 1. During July, 74,800 tons were completed. The ending work in process inventory on July 31 was 5,984 tons (10% complete). What are the total equivalent units for conversion costs? Round to the nearest whole unit.fill in the blank 1 units
Cywila Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information: Costs UnitsMaterialsConversionWork in process, Jan. 1 80% complete with respect to conversion costs100,000$100,000$157,500Units started into production500,000 Costs added during the year: Materials $650,000 Conversion $997,500Units completed during the year450,000 Work in process, Dec. 31 60% complete with respect to conversion costs150,000 The company uses the weighted-average cost method in its process costing system.Required:a) Compute the equivalent units of production for materials and for conversion costs. b) Compute the cost per equivalent units for materials and for conversion costs.c) Determine the cost of units completed during the year.d) Determine the cost of ending work-in-process inventory.
Errors in Equivalent Unit Computation Napco Refining Company processes gasoline. On June 1 of the current year, 6,400 units were 3⁄5 completed in the Blending Department. During June, 55,000 units entered the Blending Department from the Refining Department. During June, the units in process at the beginning of the month were completed. Of the 55,000 units entering the department, all were completed except 5,200 units that were 1⁄5 completed. The equivalent units for conversion costs for June for the Blending Department were computed as follows:
Equivalent Units of Conversion Costs The Rolling Department of Jabari Steel Company had 4, 698 tons in beginning work in process inventory (10% complete) on October 1. During October, 52, 200 tons were completed. The ending work in process inventory on October 31 was 3, 132 tons (60% complete). What are the total equivalent units for conversion costs? Round to the nearest whole unit.
1 Grand River Company produces a high-quality insulation material that passes through two production processes. Data for November for the first process follow: Work in process inventory, November 1 Work in process inventory, November 30 Materials cost in work in process inventory, November 1 Conversion cost in work in process inventory, November 1 Units started into production Units transferred to the next process Materials cost added during November Conversion cost added during November Units Completion with Respect to Materials 114,000 50% Completion with Respect to Conversion 25% 92,000 45% 20% $ 57,000 $ 5,700 407,500 429,500 $366,810 $151,065 Required: 1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for November for the first process. Equivalent units of production Materials Conversion 2. Compute the costs per equivalent unit for November for the first process. (Round your answers to 2 decimal places.)…
es Exercise 8-39 (Algo) Compute Costs per Equivalent Unit: FIFO Method (LO 8-2,5) The following cost information is available for July for the Crest Plant at Calvert Company: Beginning work-in-process inventory Materials cost Conversion cost Total Current costs Materials cost Conversion cost Total $ 59,000 38,000 $ 97,000 $ 150,000 400,000 $ 550,000 Materials are added at the beginning of the process. The following quantities have been recorded: ⚫ Beginning inventory, 43,000 partially complete gallons, 55 percent complete with respect to conversion costs. ⚫ Units started in July, 83,000 gallons. • Units transferred out in July. 93,000 gallons. • Ending inventory, 33,000 gallons, 70 percent complete with respect to conversion costs. Required: Compute the cost per equivalent unit for direct materials and for conversion costs for July using the FIFO method. Note: Round your answers to 2 decimal places. Cost per Equivalent Unit Direct Materials $ 1.19 Conversion Costs $ 4.44
Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Middelton Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for October: All materials are added at the beginning of the process. Beginning work in process had 125,000 units, 40 percent complete with respect to conversion costs. Ending work in process had 25,000 units, 20 percent complete with respect to conversion costs. Started in process, 175,000 units. Required: Question Content Area 1. Prepare a physical flow schedule. 2. Compute equivalent units using the weighted average method. 3. Compute equivalent units using the FIFO method. 4. Suppose that the cost of direct materials in beginning work in process is $560,000 and that the direct materials cost incurred for October is…
Problem 7. Hua Corp. manufactures hats. All material is placed in process at the beginning of the period in Department A and the process and the conversion costs are added evenly throughout the process. Upon completion the goods are immediately transferred to Department B. Department A -Month of April 20xx. Status: -Work in process 3/31/xx conversion Units completed at a cost of $300,000 20,000 ($250,000 material and $50,000 conversion) -Units started during April 50,000 -Units completed during April 30,000 -Work in process April 30th were 50% 40,000 Completed for conversion -Direct material cost added during April $450,000 -Conversion cost added during April $100,000 Required: Prepare the 5 step production cost report