Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February: Work-in-process inventory, February 1 Direct materials: 100% complete Conversion: 40% complete Units started during February Units completed during February and transferred out Work-in-process inventory, February 29 Direct materials: 100% complete Conversion: 20% complete Costs incurred during February Direct materials Conversion Required Using the weighted-average method, calculate the following: 1-a. Cost per EU 1-b. Cost of goods completed and transferred out 1-c. Costs remaining in the WIP Inventory account 2. The weighted-average cost per equivalent unit 5,000 trusses $ 11,480 $ 16,258 Direct Materials 1-a. Costs per equivalent unit. (Round your answers to 4 decimal places.) 1-b. Cost of goods completed and transferred out. (Round "Cost per EU" to 4 decimal places. Round final answer to nearest whole dollars.) 19,000 trusses 18,000 trusses $ 60,040 $ 93,092 1-c. Costs remaining in the Work-in-Process Inventory account. (Round "Cost per EU" to 4 decimal places. Do not round other intermediate calculations. Round final answer to nearest whole dollars.) 2. Assume that you are the company's controller. The production department's February equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 20 to 40% to lower the unit costs, how much would unit cost be affected by this request? (Round your answer to 4 decimal places.) by Conversion

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Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction
industry). The following information is for the production of these trusses for the month of February:
Work-in-process inventory, February 1
Direct materials: 100% complete
Conversion: 40% complete
Units started during February
Units completed during February and transferred out
Work-in-process inventory, February 29
Direct materials: 100 % complete
Conversion: 20% complete
Costs incurred during February
Direct materials
Conversion
Required
Using the weighted-average method, calculate the following:
1-a. Cost per EU
1-b. Cost of goods completed and transferred out
1-c. Costs remaining in the WIP Inventory account
2. The weighted-average cost per equivalent unit
5,000 trusses
$ 11,480
$ 16,258
Direct Materials
1-a. Costs per equivalent unit. (Round your answers to 4 decimal places.)
1-b. Cost of goods completed and transferred out. (Round "Cost per EU" to 4 decimal places. Round final answer to nearest whole
dollars.)
19,000 trusses
18,000 trusses
$ 60,040
$ 93,092
1-c. Costs remaining in the Work-in-Process Inventory account. (Round "Cost per EU" to 4 decimal places. Do not round other
intermediate calculations. Round final answer to nearest whole dollars.)
2. Assume that you are the company's controller. The production department's February equivalent unit cost is higher than expected. If
the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 20 to
40% to lower the unit costs, how much would unit cost be affected by this request? (Round your answer to 4 decimal places.)
by
Conversion
Transcribed Image Text:Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February: Work-in-process inventory, February 1 Direct materials: 100% complete Conversion: 40% complete Units started during February Units completed during February and transferred out Work-in-process inventory, February 29 Direct materials: 100 % complete Conversion: 20% complete Costs incurred during February Direct materials Conversion Required Using the weighted-average method, calculate the following: 1-a. Cost per EU 1-b. Cost of goods completed and transferred out 1-c. Costs remaining in the WIP Inventory account 2. The weighted-average cost per equivalent unit 5,000 trusses $ 11,480 $ 16,258 Direct Materials 1-a. Costs per equivalent unit. (Round your answers to 4 decimal places.) 1-b. Cost of goods completed and transferred out. (Round "Cost per EU" to 4 decimal places. Round final answer to nearest whole dollars.) 19,000 trusses 18,000 trusses $ 60,040 $ 93,092 1-c. Costs remaining in the Work-in-Process Inventory account. (Round "Cost per EU" to 4 decimal places. Do not round other intermediate calculations. Round final answer to nearest whole dollars.) 2. Assume that you are the company's controller. The production department's February equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 20 to 40% to lower the unit costs, how much would unit cost be affected by this request? (Round your answer to 4 decimal places.) by Conversion
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