# Breckenridge Corporation Conversion Costs Analysis for JuneBreckenridge Corporation manufactures a part in a single production process in Department B. The company reports the following information about conversion costs for June:| | Units | Conversion Costs ||--------------------------------|---------|------------------|| WIP at June 1 (76% complete) | 60,000 | $143,600 || Units started and costs incurred during June | 320,000 | $950,675 || Units completed and transferred to finished goods during June | 270,000 | ? |The work-in-process ending inventory was 56 percent complete with respect to conversion costs. Breckenridge uses FIFO for product costing.### Required:- **a-1.** Compute the equivalent units for conversion costs.- **a-2.** Compute the cost per equivalent unit for conversion costs.- **a-3.** What was the conversion cost of work-in-process inventory in Department B on June 30?- **b.** What were the conversion costs per equivalent unit produced last period and this period, respectively?### Interactive SectionComplete this question by entering your answers in the tabs below:- **Req A1:** Compute the equivalent units for conversion costs. - Equivalent units: __________- **Req A2:** [Tab for entering data related to part A-2 calculation]- **Req A3:** [Tab for entering data related to part A-3 calculation]- **Req B:** [Tab for entering data related to part B calculation]This task involves analyzing work-in-process inventories, computing equivalent units, and determining conversion costs, providing practical insights into cost accounting methodologies.

The equivalent units are calculated on the basis of the percentage of the work completed during the period. The cost per equivalent unit is calculated as total cost divided by the number of equivalent units.Part a.1Calculation of equivalent units- conversion cost- FIFO methodWhole unitsEquivalent units for conversion% work completedBeginning WIP60,00014,40024%Units started and completed210,000210,000100%Ending WIP110,00061,60056%Total380,000286,000Part a.2Calculation of cost per equivalent unit- conversionAmtConversion Costs incurred during the period950,675Number of equivalent units286,000Cost per equivalent unit$3.32Part a.3Ending WIP costEquivalent units for conversion – ending WIP61,600Cost per equivalent unit$3.32Total conversion cost for ending WIP$204,512Part b.For last periodConversion cost$143,600Equivalent units (60,000 * 76%)45,600Cost per equivalent unit$3.15Cost per equivalent unit – last period = $3.15Cost per equivalent units – Current period = $3.32a-1 = 286,000 units a-2 = $3.32 a-3 = $204,512 b = Cost per equivalent unit Last period = $3.15 Current period = $3.32

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Breckenridge Corporation manufactures a part in a single production process in Department B. The company reports the following information about conversion costs for June: Required: a-1. Compute the equivalent units for conversion costs. a-2. Compute the cost per equivalent unit for conversion costs. WIP at June 1 (76% complete) Units started and costs incurred during June Units completed and transferred to finished goods during June Work-in-process ending inventory was 56 percent complete with respect to conversion costs. Breckenridge uses FIFO for product costing. Complete this question by entering your answers in the tabs below. Req A1 a-3. What was the conversion cost of work-in-process inventory in Department B on June 30? b. What were the conversion costs per equivalent unit produced last period and this period, respectively? Req A2 Req A3 Units 60,000 320,000 270,000 Req B Conversion Costs Compute the equivalent units for conversion costs. Equivalent units $ 143,600 950,675 ?

Breckenridge Corporation manufactures a part in a single production process in Department B. The company reports the following information about conversion costs for June: Required: a-1. Compute the equivalent units for conversion costs. a-2. Compute the cost per equivalent unit for conversion costs. WIP at June 1 (76% complete) Units started and costs incurred during June Units completed and transferred to finished goods during June Work-in-process ending inventory was 56 percent complete with respect to conversion costs. Breckenridge uses FIFO for product costing. Complete this question by entering your answers in the tabs below. Req A1 a-3. What was the conversion cost of work-in-process inventory in Department B on June 30? b. What were the conversion costs per equivalent unit produced last period and this period, respectively? Req A2 Req A3 Units 60,000 320,000 270,000 Req B Conversion Costs Compute the equivalent units for conversion costs. Equivalent units $ 143,600 950,675 ?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Weighted Average Method, Unit Cost, Valuation of Goods Transferred Out and Ending Work in ProcessHolmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared forthe first department: Costs assigned to beginning work in process: direct materials, $90,000; conversion costs,$33,750. Manufacturing costs incurred during April: direct materials, $75,000; conversion costs,$220,000. Holmes uses the weighted average method.Required:1. Compute the unit cost for April.2. Determine the cost of ending work in process and the cost of goods transferred out.
. . Exercise 8-39 (Algo) Compute Costs per Equivalent Unit: FIFO Method (LO 8-2, 5) . The following cost information is available for July for the Crest Plant at Calvert Company: Beginning work-in-process inventory Materials cost Conversion cost Total Current costs Materials cost Conversion cost Total Materials are added at the beginning of the process. The following quantities have been recorded: Beginning inventory, 49,500 partially complete gallons, 15 percent complete with respect to conversion costs. Units started in July, 89,500 gallons. . Units transferred out in July, 99,500 gallons. Ending inventory, 39,500 gallons, 65 percent complete with respect to conversion costs. $ 65,500 44,500 $ 110,000 Direct Materials Conversion Costs $ 215,000 465,000 $ 680,000 Required: Compute the cost per equivalent unit for direct materials and for conversion costs for July using the FIFO method. Note: Round your answers to 2 decimal places. Cost per Equivalent Unit
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Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Rolling Department of Jabari Steel Company are $1.70 and $2.40, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials 0 Inventory in process, October 1 Started and completed during October Transferred out of Rolling (completed) Inventory in process, October 31 Total units to be assigned costs 72,000 The beginning work in process inventory on October 1 had a cost of $2,900. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department. Completed and transferred-out production Inventory in process, October 31 Total costs assigned by the Rolling Department 65,000 65,000 7,000 Equivalent Units Conversion 4,600 65,000 69,600 S 2,800 72,400
Department M had 2, 800 units 53% completed in process at the beginning of June, 11, 200 units completed during June, and 800 units 33% completed at the end of June. The number of equivalent units of production for conversion costs for June if the first - in, first-out method is used to cost inventories is a. 11,464 units b. 9, 980 units c. 8, 400 units d. 12, 264 units
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