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John Doe 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: Units Materials Conversion Work in process, Jan. 1 80% complete with respect to conversion costs $100,000 $157,500 100,000 500,000 Units started into production Costs added during the year: Materials $650,000 Conversion $997,500 Units completed during the year 450,000 The company uses the weighted-average method in its process costing system. The ending inventory is 50% complete with respect to conversion costs. Required: a) Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. b) Determine the cost transferred to finished goods. c) Detemine the amount of cost that should be assigned to the ending work-in-process inventory.

John Doe 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: Units Materials Conversion Work in process, Jan. 1 80% complete with respect to conversion costs $100,000 $157,500 100,000 500,000 Units started into production Costs added during the year: Materials $650,000 Conversion $997,500 Units completed during the year 450,000 The company uses the weighted-average method in its process costing system. The ending inventory is 50% complete with respect to conversion costs. Required: a) Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. b) Determine the cost transferred to finished goods. c) Detemine the amount of cost that should be assigned to the ending work-in-process inventory.

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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John Doe 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: Units Materials Conversion Work in process, Jan. 1 80% complete with respect to conversion costs $100,000 $157,500 100,000 500,000 Units started into production Costs added during the year: Materials $650,000 Conversion $997,500 Units completed during the year 450,000 The company uses the weighted-average method in its process costing system. The ending inventory is 50% complete with respect to conversion costs. Required: a) Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. b) Determine the cost transferred to finished goods. ) Detemine the amount of cost that should be assigned to the ending work-in-process inventory.
Transcribed Image Text:John Doe 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: Units Materials Conversion Work in process, Jan. 1 80% complete with respect to conversion costs $100,000 $157,500 100,000 500,000 Units started into production Costs added during the year: Materials $650,000 Conversion $997,500 Units completed during the year 450,000 The company uses the weighted-average method in its process costing system. The ending inventory is 50% complete with respect to conversion costs. Required: a) Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. b) Determine the cost transferred to finished goods. ) Detemine the amount of cost that should be assigned to the ending work-in-process inventory.
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