a. Compute the equivalent units for materials using the weighted-average method.b. Compute the equivalent units for conversion costs using the weighted-average method. **Conlon Chemicals Case Study: Paint Thinner Production Process**Conlon Chemicals is engaged in the manufacturing of paint thinner. The following information outlines the current status of the work in process:- **Beginning Inventory:** 30,000 gallons (partially complete)- **Transferred Out:** 157,500 gallons- **Ending Inventory:** - Materials are 10% complete - Conversion costs are 20% complete- **New Production Started This Month:** 180,000 gallons**Objective:**The task involves calculating the equivalent units using the weighted-average method for two components:a. **Materials:** Determine the equivalent units for materials.b. **Conversion Costs:** Determine the equivalent units for conversion costs.**Table for Calculation:**| Equivalent Units (gallons) || ----------------------------- || a. Materials || b. Conversion costs |This exercise is designed to facilitate understanding of the weighted-average method in calculating equivalent units in process costing.

a. & b. Materials Conversion Costs Units transferred out 157,500 157,500 Equivalent…

Conlon Chemicals manufactures paint thinner. Information on the work in process follows: . Beginning Inventory, 30,000 partially complete gallons. . Transferred out, 157,500 gallons. . Ending Inventory (materials are 10 percent complete; conversion costs are 20 percent complete). • Started this month, 180,000 gallons. Required: a. Compute the equivalent units for materials using the weighted-average method. b. Compute the equivalent units for conversion costs using the weighted-average method.

Conlon Chemicals manufactures paint thinner. Information on the work in process follows: . Beginning Inventory, 30,000 partially complete gallons. . Transferred out, 157,500 gallons. . Ending Inventory (materials are 10 percent complete; conversion costs are 20 percent complete). • Started this month, 180,000 gallons. Required: a. Compute the equivalent units for materials using the weighted-average method. b. Compute the equivalent units for conversion costs using the weighted-average method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The total absorbtion rate used to allocate manuafcturing overhead is calculated by?

A: The absorption rate is allocated using the different allocation bases Direct labors hours Direct…

Q: The number of equivalent units in work in process regarding direct materials and conversion costs:…

A: Equivalent units means the whole units on which the cost has been incurred For example: Direct…

Q: Weighted-average unit cost

A: Weighted average unit cost is the per unit cost which is calculated dividing the total value of…

Q: Define equivalent units of production.

A: Definition: Process costing: It is a method of cost accounting, which is used where the production…

Q: Give two examples of appraisal costs.

A: Appraisal costs are costs that are associated with the quality control process incurred by the…

Q: Which of the following is a conversion cost?A. raw materialsB. direct laborC. sales commissionsD.…

A: Conversion costs seem to be the expenses of converting raw resources into finished goods. In cost…

Q: 2) Which of the following is the type of cost calculated with a scientific and engineering approach…

A: A company will incur various costs to earn revenue. The costs can be either direct or indirect costs…

Q: The standards for direct materials are made up of which of the following components? a.variance…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: Both the equivalent units schedules and the physical flow are prerequisites to calculating the…

A: The question is related to Process Costing. There are two methods of equivalent units 1. FIFO 2.…

Q: When computing the cost per equivalent unit the weighted-average method of process costing, the cost…

A: Weighted Average Method :— Under this method, equivalent units is calculated by adding equivalent…

Q: Conversion costs are A. direct materials plus manufacturing overhead. B. direct labor plus…

A: Conversion cost are those cost which are incurred to convert raw material into finished goods.

Q: Which among the following alternative methods of costing is related to the best use of physical…

A: Since you have asked multiple questions, we will answer the first full question for you. Please…

Q: Dengo Company makes a trail mix in two departments: Roasting and Blending. Direct materials are…

A: Direct materials refers to the tangible components that make up a product. Cost accounting uses the…

Q: Calculate the total absorbtion rate used to apportion manufacturing overhead by?

A: The absorption rate is assigned according to the various allocation grounds. Hours of direct work…

Q: Which of the following formulae is used to calculate the cost per equivalent unit of production…

A: Equivalent units of production = Fully and partially completed units expressed as , % of fully…

Q: Formula for computing the unit cost of transferred out units

A: In the process costing the cost of each stage is added to the completed units in the same process.

Q: Describe the term cost of the direct materials.

A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: The second step in accounting for process costs will be to O a compute total costs of work completed…

A: Process costing is a part of cost analysis which is used by organizations that have more than 1…

Q: In terms of cost behaviour, telephone expense and direct materials are classified as: a. Variable…

A: In the context of the given question, we are required to find the correct option from the available…

Q: 2. Distinguish between direct and indirect costs.

A: Costs or expenditure is the amount which is incurred by the manufacturer entity in the production of…

Q: Which of the following equations can be used to compute a materials price variance (where AQ =…

A: Introduction: Materials price variance: Difference between the Standard price and actual price and…

Q: The unit cost… a. is the total conversion costs divided by the number of units produced. b. is the…

A: Solution A unit cost is a total expenditure incurred by a company to produce , store and sell one…

Q: Provide the meaning of material cost and the procedure for estimation of material cost

A: Material costs are those costs incurred to produce a product or provide a service. Any product has a…

Q: Explain unit product cost under absorption costing.

A: Absorption costing (also known as the “Cost-Plus” approach), is a method that is centered upon the…

Q: Prime cost is? A)Group of answer choices B)indirect materials cost and direct labor cost.…

A: Prime cost refers to the cost related to direct labour and direct material For example in the…

Q: What is the cost per equivalent unit for materials?

Q: What is the formula used to determine the amount of direct materials to be purchased?

A: Direct materials: Direct materials are the materials and supplied that are directly consumed for…

Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

a. Compute the equivalent units for materials using the weighted-average method.

b. Compute the equivalent units for conversion costs using the weighted-average method.

**Conlon Chemicals Case Study: Paint Thinner Production Process**

Conlon Chemicals is engaged in the manufacturing of paint thinner. The following information outlines the current status of the work in process:

- **Beginning Inventory:** 30,000 gallons (partially complete)
- **Transferred Out:** 157,500 gallons
- **Ending Inventory:**
- Materials are 10% complete
- Conversion costs are 20% complete
- **New Production Started This Month:** 180,000 gallons

**Objective:**

The task involves calculating the equivalent units using the weighted-average method for two components:

a. **Materials:** Determine the equivalent units for materials.
b. **Conversion Costs:** Determine the equivalent units for conversion costs.

**Table for Calculation:**

| Equivalent Units (gallons) |
| ----------------------------- |
| a. Materials |
| b. Conversion costs |

This exercise is designed to facilitate understanding of the weighted-average method in calculating equivalent units in process costing.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Indirect materials used in making goods.
Explain the calculation of equivalent units of production.
Which of the following is the difference between the actual cost of materials and thematerials cost allowed for the actual level of activity? a. Total materials variance b. Total materials regression c. Total materials cost d. Total materials margin e. None of these
7. How is direct material cost per equivalent unit calculated?
When computing the cost per equivalent unit under the wighted-average method of process costing, the cost per equivalent unit for direct material is computed by dividing the total direct-material cost by the total equivalent units. True or False?
Describe allocation of joint costs across products.
Contrast the productcosts computed under activitybased costing and conventionalcosting methods
A direct material standard cost is: Group of answer choices The cost of direct materials that should be incurred to produce one unit of output or product. The amount of direct materials that should be used to produce one unit of output or product. The cost of all materials and supplies used to produce one unit of output or product. The price that should be spent to purchase each unit of direct material for production.
Conversion costs include Direct materials and Overhead costs. TRUE FALSE