Determine the equivalent units
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...
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Vishnu
![Gamma, Inc. manufactures a product that passes through two production processes. A quantity schedule for a recent month for the
first process follows:
Quantity
Schedule
Units to be accounted for:
Work in process, May 1 (70% materials, 60%
conversion cost added last month)
40,000
Started into production
Total units
160,000
200,000
Costs in the beginning work-in-process inventory of the first processing department were materials, $7,000, and conversion cost,
$18,000. Costs added during the month were materials, $60,000, and conversion cost, $360,000.
Required:
1. Assume that the company uses the weighted average cost method of accounting for units and costs. Determine the equivalent units
for the month for the first process.
Quantity
Schedule
Equivalent Units (EU)
Materials Conversion
Units accounted for as follows:
Transferred to the next process
180,000
200,000
184,000
Work in process, May 31 (all materials, 60% conversion
20.000
33,000
cost added this month)
80,000
Total units and equivalent units of production
200,000
233,000
264,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5eed48bc-531d-43e5-afea-a164fe7f00cc%2Fd3cc521d-dbcc-434e-b957-03985d5c039c%2F3fmwune_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Gamma, Inc. manufactures a product that passes through two production processes. A quantity schedule for a recent month for the
first process follows:
Quantity
Schedule
Units to be accounted for:
Work in process, May 1 (70% materials, 60%
conversion cost added last month)
40,000
Started into production
Total units
160,000
200,000
Costs in the beginning work-in-process inventory of the first processing department were materials, $7,000, and conversion cost,
$18,000. Costs added during the month were materials, $60,000, and conversion cost, $360,000.
Required:
1. Assume that the company uses the weighted average cost method of accounting for units and costs. Determine the equivalent units
for the month for the first process.
Quantity
Schedule
Equivalent Units (EU)
Materials Conversion
Units accounted for as follows:
Transferred to the next process
180,000
200,000
184,000
Work in process, May 31 (all materials, 60% conversion
20.000
33,000
cost added this month)
80,000
Total units and equivalent units of production
200,000
233,000
264,000
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