Martin Manufacturing has two manufacturing departments, Forming and Painting. The company uses the weighted-average method and it reports thefollowing data. Units completed in the Forming department are transferred to the Painting department.Beginning work in process inventoryUnits started this periodBeginning work in processDirect materialsConversionCosts added this periodDirect materialsConversion1,200,0001,180,000120,000Units completed and transferred outEnding work in process inventoryProduction cost information for the Forming department follows.Units100,000$ 179,20061,200$ 4,924,8003,586,800Direct materialsPercent Complete$ 240,4008,511,60060%80%Conversion PercentComplete40%30%Calculate the costs per equivalent unit of production for both direct materials and conversion for the Forming department.

The weighted average method of equivalent units is a cost accounting technique used to allocate…

Answered: Calculate the costs per equivalent unit…

Calculate the costs per equivalent unit of production for both direct materials and conversion for the Forming department.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following statements regarding process costing are true? 1. When computing the cost per equivalent unit of production, it is necessary to consider the percentage of completion of the units in beginning inventory. II. When computing the cost per equivalent unit of production, prior period costs are combined with current period costs. III. When all materials are added at the beginning of the production process, the equivalent units of production for materials is equal to the units completed and transferred out. Statements I and II are true. O Only Statement Il is true. O Only Statement Ill is true. O Statements II and III are true.
Classify each of the following costs as either unit-level, batch-level, product-level, or facility-level. a. Engineering costs for a new product b. Order processing c. Depreciation on factory d. Direct labor e. Shipment of an order to a customer f. Product line manager salary g. Machine setup costs that are incurred whenever a new production order is started h. Patent for new product ore help Product-level Batch-level or Unit-level or Facility-level Facility-level Unit-level Unit-level Batch-level Batch-level or Facility-level Batch-level or Unit-level Batch-level or Unit-level or Facility-level Facility-level Facility-level or Product-level Facility-level or Unit-level Product-level Unit-level all
What is meant by the term equivalent units, with regards to process costing?
Materials that enter into and become a significant part of the finished product are called a.operating expenses. b.direct materials. c.indirect materials. d.administrative expenses.
Why might a company have different numbers of equivalent units for direct materials and conversion materials?
What term refers to a grouping of costs that consists of direct labor and factory overhead costs and is considered to be the cost of converting the materials into a finished product? Group of answer choices prime costs conversion costs allocation costs just-in-time costs
Which of the following activity bases would be appropriate to use for materials handling? A. Number of machine hours B. Number of material moves C. Number of production orders D. Kilowatt-hours used
Which of the following quantities is an example of an activity cost driver in activity-based costing? O A. number of direct labour hours O B. number of labour transactions O C. number of machine hours O D. all of the above
1.The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one: a.dividing the total estimated manufacturing overhead costs by the total estimated quantity of the allocation base b.dividing the total estimated manufacturing overhead by the total actual quantity of the cost driver c.dividing the total actual manufacturing overhead costs by the total estimated quantity of the cost driver d.dividing the total estimated quantity of the cost driver by the total estimated manufacturing overhead costs
What information is contained in a production report? What are equivalent units and how would a company calculate them? How does the production report and equivalent units relate to unit costs?
In a process costing system, the entry to record the use of direct materials in production would include a: a) debit to finished goods inventory b) debit to materials inventory c) debit to work in process inventory d) credit to finished goods inventory
Process costing is an effective method to identify resource and logistics costs. Please respond to the following: Discuss the specific steps you would take to design a process costing system that effectively identifies resource and logistics costs of a manufactured product.