How do you get the $41,200 from the 70% of 85000 units shown in answer 2 solution

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How do you get the $41,200 from the 70% of 85000 units shown in answer 2 solution 

WEIGHTED AVERAGE METHOD (MIXING DEPARTMENT)
Units
Particulars
Beginning work in progress
Current period introduction
85,000.00
400,000.00
485,000.00
Total units
PRODUCTION COST REPORT
Particulars
Completed & transferredout
Units
385,000.00
100,000.00
485,000.00
Ending WIP
Total units
Equivalent units calculation
Units
80%
45%
Material
Completed & transferredout
Ending work in progress
385,000.00
385,000.00
385,000.00
100,000.00
80,000.00
45,000.00
Total
485,000.00
465,000.00
430,000.00
Answer 1:-
Equivalent units for material for june for mixing department = 465,000 units
Equivalent units for coversion for june for mixing department = 430,000 units
Answer 2:-
Cost per equivalent units for material for june (41200+368000)/465000 = 0.88
Cost per equivalent units for conversion for june (16500+263000)/430000 = 0.65
Cost per equivalent units for june for mixing department = 0.88 + 0.65 = 1.53 per EUP
%3D
Transcribed Image Text:WEIGHTED AVERAGE METHOD (MIXING DEPARTMENT) Units Particulars Beginning work in progress Current period introduction 85,000.00 400,000.00 485,000.00 Total units PRODUCTION COST REPORT Particulars Completed & transferredout Units 385,000.00 100,000.00 485,000.00 Ending WIP Total units Equivalent units calculation Units 80% 45% Material Completed & transferredout Ending work in progress 385,000.00 385,000.00 385,000.00 100,000.00 80,000.00 45,000.00 Total 485,000.00 465,000.00 430,000.00 Answer 1:- Equivalent units for material for june for mixing department = 465,000 units Equivalent units for coversion for june for mixing department = 430,000 units Answer 2:- Cost per equivalent units for material for june (41200+368000)/465000 = 0.88 Cost per equivalent units for conversion for june (16500+263000)/430000 = 0.65 Cost per equivalent units for june for mixing department = 0.88 + 0.65 = 1.53 per EUP %3D
Firenze, Inc., manufactures a product that goes through two departments prior to
completion-the Mixing Department followed by the Packaging Department. The
following information is available about work in the first department, the Mixing
Department, during June.
Percent Completed
Materials Conversion
70%
Work in process, beginning
Started into production
Completed and transferred out
Work in process, ending
Work in process, beginning
Cost added during June
Units
85,000
400,000
385,000
100,000
30%
80%
$41,200
$368,000
45%
$16,500
$263,000
Required:
Assume that the company uses the weighted-average method.
1. Determine the equivalent units for June for the Mixing Department.
2. Compute the costs per equivalent unit for June for the Mixing Department.
3. Determine the total cost of ending work in process inventory and the total cost of units
transferred to the Packaging Department.
4. Prepare a cost reconciliation report for the Mixing Department for June.
Transcribed Image Text:Firenze, Inc., manufactures a product that goes through two departments prior to completion-the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June. Percent Completed Materials Conversion 70% Work in process, beginning Started into production Completed and transferred out Work in process, ending Work in process, beginning Cost added during June Units 85,000 400,000 385,000 100,000 30% 80% $41,200 $368,000 45% $16,500 $263,000 Required: Assume that the company uses the weighted-average method. 1. Determine the equivalent units for June for the Mixing Department. 2. Compute the costs per equivalent unit for June for the Mixing Department. 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department. 4. Prepare a cost reconciliation report for the Mixing Department for June.
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