Cywila Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information:       Costs   Units Materials Conversion Work in process, Jan. 1       80% complete with respect to conversion costs 100,000 $100,000 $157,500 Units started into production 500,000     Costs added during the year:       Materials   $650,000   Conversion     $997,500 Units completed during the year 450,000     Work in process, Dec. 31       60% complete with respect to conversion costs 150,000     The company uses the weighted-average cost method in its process costing system. Required: a) Compute the equivalent units of production for materials and for conversion costs.  b) Compute the cost per equivalent units for materials and for conversion costs. c) Determine the cost of units completed during the year. d) Determine the cost of ending work-in-process inventory

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Cywila Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information:

 

 

 

Costs

 

Units

Materials

Conversion

Work in process, Jan. 1

 

 

 

80% complete with respect to conversion costs

100,000

$100,000

$157,500

Units started into production

500,000

 

 

Costs added during the year:

 

 

 

Materials

 

$650,000

 

Conversion

 

 

$997,500

Units completed during the year

450,000

 

 

Work in process, Dec. 31

 

 

 

60% complete with respect to conversion costs

150,000

 

 

The company uses the weighted-average cost method in its process costing system.

Required:
a) Compute the equivalent units of production for materials and for conversion costs. 

b) Compute the cost per equivalent units for materials and for conversion costs.

c) Determine the cost of units completed during the year.

d) Determine the cost of ending work-in-process inventory.

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