Activity 2 Portal Manufacturing, which began business in 1956, uses a weighted-average process-costing system. The following figures pertain to July: Physical Units 120,000 40,000 Equivalent Units Materials 120,000 40,000 Conversion 120,000 18,000 Units completed Ending work in process All materials are introduced at the start of the process, and conversion cost is incurred evenly throughout production. The company used direct materials that cost $640,000; conversion amounted to $8 per equivalent unit. Required: A. Calculate the direct materials cost per equivalent unit. B. Calculate the cost of units completed and transferred. C. What percentage of conversion work will be performed on the 40,000-unit ending work-in- process inventory during August?
Activity 2 Portal Manufacturing, which began business in 1956, uses a weighted-average process-costing system. The following figures pertain to July: Physical Units 120,000 40,000 Equivalent Units Materials 120,000 40,000 Conversion 120,000 18,000 Units completed Ending work in process All materials are introduced at the start of the process, and conversion cost is incurred evenly throughout production. The company used direct materials that cost $640,000; conversion amounted to $8 per equivalent unit. Required: A. Calculate the direct materials cost per equivalent unit. B. Calculate the cost of units completed and transferred. C. What percentage of conversion work will be performed on the 40,000-unit ending work-in- process inventory during August?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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