P2. Computation of costs per equivalent unit. The Grinding department of Miller Inc. has provided the following costs information: Compute the costs per equivalent units for direct materials under the weighted-average method. (Round your answer to the nearest cent.) Beginning WIP: Direct materials $40,000 Conversion $10,000 $50,000 Costs added during the period: Direct materials $290,000 Conversion $120,000 $410,000 Total costs in the process to account for $460,000 The equivalent units of production for direct materials and conversion costs are 40,000 and 50,000, respectively. At the end of the period, 30,000 units are completed and transferred to the next processing department. Required: a) Compute the costs per equivalent unit for direct materials and conversion. b) Compute the production costs to be assigned to the units completed and transferred out to the next process. Solution: a) Costs per EU = Total costs/ total equivalent units Direct Materials Conversion Total costs Equivalent units Costs per EU b) Production costs to be assigned to the UCTO = Costs per EU x Number of UCTO DM Conversion Total Costs per EU Number of UCTO Production costs to be assigned to the UCTO
P2. Computation of costs per equivalent unit. The Grinding department of Miller Inc. has provided the following costs information: Compute the costs per equivalent units for direct materials under the weighted-average method. (Round your answer to the nearest cent.) Beginning WIP: Direct materials $40,000 Conversion $10,000 $50,000 Costs added during the period: Direct materials $290,000 Conversion $120,000 $410,000 Total costs in the process to account for $460,000 The equivalent units of production for direct materials and conversion costs are 40,000 and 50,000, respectively. At the end of the period, 30,000 units are completed and transferred to the next processing department. Required: a) Compute the costs per equivalent unit for direct materials and conversion. b) Compute the production costs to be assigned to the units completed and transferred out to the next process. Solution: a) Costs per EU = Total costs/ total equivalent units Direct Materials Conversion Total costs Equivalent units Costs per EU b) Production costs to be assigned to the UCTO = Costs per EU x Number of UCTO DM Conversion Total Costs per EU Number of UCTO Production costs to be assigned to the UCTO
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
Related questions
Question
P2. | Computation of costs per equivalent unit. | |||||
The Grinding department of Miller Inc. has provided the following costs information: | ||||||
Compute the costs per equivalent units for direct materials under the weighted-average method. (Round your answer to the nearest cent.) | ||||||
Beginning WIP: | ||||||
Direct materials | $40,000 | |||||
Conversion | $10,000 | $50,000 | ||||
Costs added during the period: | ||||||
Direct materials | $290,000 | |||||
Conversion | $120,000 | $410,000 | ||||
Total costs in the process to account for | $460,000 | |||||
The equivalent units of production for direct materials and conversion costs are 40,000 and 50,000, respectively. | ||||||
At the end of the period, 30,000 units are completed and transferred to the next processing department. | ||||||
Required: | ||||||
a) | Compute the costs per equivalent unit for direct materials and conversion. | |||||
b) | Compute the production costs to be assigned to the units completed and transferred out to the next process. | |||||
Solution: | ||||||
a) | Costs per EU = Total costs/ total equivalent units | |||||
Direct Materials | Conversion | |||||
Total costs | ||||||
Equivalent units | ||||||
Costs per EU | ||||||
b) | Production costs to be assigned to the UCTO = Costs per EU x Number of UCTO | |||||
DM | Conversion | Total | ||||
Costs per EU | ||||||
Number of UCTO | ||||||
Production costs to be assigned to the UCTO |
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