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
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Transcribed Image Text: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
Conversion
120,000
18,000
Materials
120,000
Units completed
Ending work in process
40,000
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 S640,000; 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?
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