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how to determine the CURRENT conversion costs.

how to determine the CURRENT conversion costs.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help on figuring out how to determine the CURRENT conversion costs. That is all I really need help with. 

age Method The following data (and annotations) are for Joyner Company's processing department work-in-process account for the month of June 2019: Beginning inventory (700 units, 40% complete) Direct materials $20,335 Conversion costs 55,594 Current period Direct materials (5,000 units) 245,000 Direct labor 417,200 Manufacturing overhead applied 264,600 Joyner uses the weighted average method. Materials are added at the beginning of the process and conversion costs are incurred evenly throughout. Ending work-in-process is composed of 900 units, 70% complete. Compute the following: a. Equivalent units for materials and conversion. b. Cost per equivalent unit for materials and conversion. c. Total cost assigned to the units transferred out. Equivalent Units % Work Direct % Work Conversion Where do the units come from? Where do the units go? Done? Materials Done? Costs Complete/Transferred 4,800 v 100 % 4,800 100 % 4,800 Beginning Inventory 700 5,000 Ending Inventory 900 V 100 96 900 70 % 630 Started 5,700 5,700 V a. 5,430 V a. Total 5,700 Total Product Cost Report Direct Conversion aterials Costs Where do the costs come from? 20,335 V 55,594 75,929 Beginning Inventory 0 x 245,000 0 x Current %24 0 x 0 X 265,335 Total Costs to Account For 5,430 v 5,700 v + Total Equivalent Units 0 x b. 46.55 V b.$ Average cost / Equivalent unit Where do the costs go? Complete / Transferred: 223,440 v Direct Materials Conversion costs %24 0 x C. Costs of Goods Manufactured Ending Inventory: Direct Materials Conversion costs Cost of Ending Inventory Total Costs Allocated Check %24
Transcribed Image Text:age Method The following data (and annotations) are for Joyner Company's processing department work-in-process account for the month of June 2019: Beginning inventory (700 units, 40% complete) Direct materials $20,335 Conversion costs 55,594 Current period Direct materials (5,000 units) 245,000 Direct labor 417,200 Manufacturing overhead applied 264,600 Joyner uses the weighted average method. Materials are added at the beginning of the process and conversion costs are incurred evenly throughout. Ending work-in-process is composed of 900 units, 70% complete. Compute the following: a. Equivalent units for materials and conversion. b. Cost per equivalent unit for materials and conversion. c. Total cost assigned to the units transferred out. Equivalent Units % Work Direct % Work Conversion Where do the units come from? Where do the units go? Done? Materials Done? Costs Complete/Transferred 4,800 v 100 % 4,800 100 % 4,800 Beginning Inventory 700 5,000 Ending Inventory 900 V 100 96 900 70 % 630 Started 5,700 5,700 V a. 5,430 V a. Total 5,700 Total Product Cost Report Direct Conversion aterials Costs Where do the costs come from? 20,335 V 55,594 75,929 Beginning Inventory 0 x 245,000 0 x Current %24 0 x 0 X 265,335 Total Costs to Account For 5,430 v 5,700 v + Total Equivalent Units 0 x b. 46.55 V b.$ Average cost / Equivalent unit Where do the costs go? Complete / Transferred: 223,440 v Direct Materials Conversion costs %24 0 x C. Costs of Goods Manufactured Ending Inventory: Direct Materials Conversion costs Cost of Ending Inventory Total Costs Allocated Check %24
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