Annin Laboratories uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for February: Beginning WIP inventory Direct materials $ 20,553 Conversion costs 6,805 Current period costs Direct materials 225,147 Conversion costs 117,460 Quantity information is obtained from the manufacturing records and includes the following: Beginning inventory 6,000 units (40% complete as to materials, 15% complete as to conversion) Current period units started 44,000 units Ending inventory 11,000 units (75% complete as to materials, 35% complete as to conversion) Required: Compute the equivalent units for the materials and conversion cost calculations. Compute the cost per equivalent unit for direct materials and conversion costs. Compute the cost of goods transferred out and the ending inventory for Febru
Annin Laboratories uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for February: Beginning WIP inventory Direct materials $ 20,553 Conversion costs 6,805 Current period costs Direct materials 225,147 Conversion costs 117,460 Quantity information is obtained from the manufacturing records and includes the following: Beginning inventory 6,000 units (40% complete as to materials, 15% complete as to conversion) Current period units started 44,000 units Ending inventory 11,000 units (75% complete as to materials, 35% complete as to conversion) Required: Compute the equivalent units for the materials and conversion cost calculations. Compute the cost per equivalent unit for direct materials and conversion costs. Compute the cost of goods transferred out and the ending inventory for Febru
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Annin Laboratories uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for February:
| Beginning WIP inventory | |
|---|---|
| Direct materials | $ 20,553 |
| Conversion costs | 6,805 |
| Current period costs | |
| Direct materials | 225,147 |
| Conversion costs | 117,460 |
Quantity information is obtained from the manufacturing records and includes the following:
| Beginning inventory | 6,000 | units | (40% complete as to materials, 15% complete as to conversion) |
|---|---|---|---|
| Current period units started | 44,000 | units | |
| Ending inventory | 11,000 | units | (75% complete as to materials, 35% complete as to conversion) |
Required:
- Compute the equivalent units for the materials and conversion cost calculations.
- Compute the cost per equivalent unit for direct materials and conversion costs.
-
Compute the cost of goods transferred out and the ending inventory for February using the weighted-average method.
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