Based on customer interest in February, Santana expands her computer workstation furniture business to include mass production of standardized desks and chairs. She uses the weighted average method of process costing for these products. Desks are made in three processes: Cutting, Finishing, and Packaging. Information below is for the Cutting process for desks for February. Cutting process-Desks Beginning work in process inventory Units started this period Units completed and transferred to Finishing Ending work in process inventory (100% complete for direct materials, 90% complete for conversion) Costs added this month Direct materials Conversion Required: 1. Compute equivalent units of production for both direct materials and conversion for February. 2. Compute cost per equivalent unit for both direct materials and conversion for February. 3. Assign costs to units transferred out to Finishing and to units in ending work in process inventory. Cost $ 30,600 6,640 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute cost per equivalent unit for both direct materials and conversion for February. Cost per Equivalent Unit of Production Total costs + Equivalent units of production Cost per equivalent unit of production Direct Materials Conversion Units 0 85 65 20
Based on customer interest in February, Santana expands her computer workstation furniture business to include mass production of standardized desks and chairs. She uses the weighted average method of process costing for these products. Desks are made in three processes: Cutting, Finishing, and Packaging. Information below is for the Cutting process for desks for February. Cutting process-Desks Beginning work in process inventory Units started this period Units completed and transferred to Finishing Ending work in process inventory (100% complete for direct materials, 90% complete for conversion) Costs added this month Direct materials Conversion Required: 1. Compute equivalent units of production for both direct materials and conversion for February. 2. Compute cost per equivalent unit for both direct materials and conversion for February. 3. Assign costs to units transferred out to Finishing and to units in ending work in process inventory. Cost $ 30,600 6,640 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute cost per equivalent unit for both direct materials and conversion for February. Cost per Equivalent Unit of Production Total costs + Equivalent units of production Cost per equivalent unit of production Direct Materials Conversion Units 0 85 65 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Based on customer interest in February, Santana expands her computer workstation furniture business to include mass production of
standardized desks and chairs. She uses the weighted average method of process costing for these products. Desks are made in
three processes: Cutting, Finishing, and Packaging. Information below is for the Cutting process for desks for February.
Cutting process-Desks
Beginning work in process inventory
Units started this period
Units completed and transferred to Finishing
Ending work in process inventory (100% complete for direct materials, 90% complete for conversion)
Costs added this month
Direct materials
Conversion
Required:
1. Compute equivalent units of production for both direct materials and conversion for February.
2. Compute cost per equivalent unit for both direct materials and conversion for February.
3. Assign costs to units transferred out to Finishing and to units in ending work in process inventory.
Cost
$ 30,600
6,640
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Compute cost per equivalent unit for both direct materials and conversion for February.
Cost per Equivalent Unit of Production
Total costs
+ Equivalent units of production
Cost per equivalent unit of production
Direct Materials Conversion
Units
85
65
20
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