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Required information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct Materials Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory The production department had the cost information below. Beginning work in process inventory Direct materials Units 81,000 427,000 405,000 103,000 Conversion Costs added this period Direct materials. Conversion Total costs to account for $ 222,485 65,382 1,434,675 1,002,573 Percent Complete 65% 80% $ 287,867 2,437,248 $ 2,725,115 a. Compute cost per equivalent unit for both direct materials and conversion. Note: Round "Cost per EUP" to 2 decimal places. Conversion Percent Complete 35% 30% b. Using the weighted average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. Note: Round "Cost per EUP" to 2 decimal places.

Required information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct Materials Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory The production department had the cost information below. Beginning work in process inventory Direct materials Units 81,000 427,000 405,000 103,000 Conversion Costs added this period Direct materials. Conversion Total costs to account for $ 222,485 65,382 1,434,675 1,002,573 Percent Complete 65% 80% $ 287,867 2,437,248 $ 2,725,115 a. Compute cost per equivalent unit for both direct materials and conversion. Note: Round "Cost per EUP" to 2 decimal places. Conversion Percent Complete 35% 30% b. Using the weighted average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. Note: Round "Cost per EUP" to 2 decimal places.

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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### Required information #### [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April: | | Direct Materials | Conversion | |-----------------------------------------|------------------|-------------| | | | | | **Units** | | | | Beginning work in process inventory | 81,000 | | | - Percent Complete | | 65% | | Units started this period | 427,000 | | | Completed and transferred out | 405,000 | | | Ending work in process inventory | 103,000 | | | - Percent Complete | | 80% | | - Percent Complete | | 30% | The production department had the cost information below: - **Beginning work in process inventory** - Direct materials: $222,485 - Conversion: $65,382 - Total: $287,867 - **Costs added this period** - Direct materials: $1,434,675 - Conversion: $1,002,573 - Total: $2,437,248 - **Total costs to account for** - $2,725,115 ### Instructions: **a. Compute the cost per equivalent unit for both direct materials and conversion.** - **Note:** Round "Cost per EUP" to 2 decimal places. **b. Using the weighted average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory.** - **Note:** Round "Cost per EUP" to 2 decimal places. --- The above information and instructions are presented for educational purposes, aiming to help students understand and solve cost accounting problems related to equivalent units of production (EUP) and process costing in a manufacturing environment.
Transcribed Image Text:### Required information #### [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April: | | Direct Materials | Conversion | |-----------------------------------------|------------------|-------------| | | | | | **Units** | | | | Beginning work in process inventory | 81,000 | | | - Percent Complete | | 65% | | Units started this period | 427,000 | | | Completed and transferred out | 405,000 | | | Ending work in process inventory | 103,000 | | | - Percent Complete | | 80% | | - Percent Complete | | 30% | The production department had the cost information below: - **Beginning work in process inventory** - Direct materials: $222,485 - Conversion: $65,382 - Total: $287,867 - **Costs added this period** - Direct materials: $1,434,675 - Conversion: $1,002,573 - Total: $2,437,248 - **Total costs to account for** - $2,725,115 ### Instructions: **a. Compute the cost per equivalent unit for both direct materials and conversion.** - **Note:** Round "Cost per EUP" to 2 decimal places. **b. Using the weighted average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory.** - **Note:** Round "Cost per EUP" to 2 decimal places. --- The above information and instructions are presented for educational purposes, aiming to help students understand and solve cost accounting problems related to equivalent units of production (EUP) and process costing in a manufacturing environment.
### Cost Per Equivalent Unit Calculation and Cost Assignment #### Requirements ##### a. Compute Cost Per Equivalent Unit Calculate the cost per equivalent unit for both direct materials and conversion costs. * **Note:** Round “Cost per EUP” to 2 decimal places. ##### b. Cost Assignment Using Weighted Average Method Using the weighted average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. * **Note:** Round “Cost per EUP” to 2 decimal places. ### Required a. #### Cost Per Equivalent Unit of Production: Weighted Average Method | | Direct Materials | Conversion | |--------------------------------------|------------------|------------| | Beginning work in process inventory | | | | Current period costs | | | | Total costs | | | | | Costs | Costs | | ÷ Equivalent units of production | EUP | EUP | | Cost per equivalent unit of production (rounded to 2 decimals) | | | ### Required b. #### Cost Assignment—Weighted Average | | | EUP | Cost per EUP | Total cost | |---------------------------------|---------------------|-----|--------------|------------| | **Completed and transferred out** | | | | | | Direct materials | | | | | | Conversion | | | | | | Total costs completed and transferred out | | | | | | **Ending work in process** | | | | | | Direct materials | | | | | | Conversion | | | | | | Total cost of ending work in process | | | | | | **Total costs accounted for** | | | | | ### Explanation #### Graphs and Diagrams In this table, we have two sections: "Required a." and "Required b." These sections are designed to help organize and calculate specific accounting-related quantities. 1. **Cost Per Equivalent Unit of Production: Weighted Average Method (Required a. Section):** - This section contains a table split into two primary columns: Direct Materials and Conversion. - The rows guide you through determining the total costs for beginning work in process inventory and current period costs for both Direct
Transcribed Image Text:### Cost Per Equivalent Unit Calculation and Cost Assignment #### Requirements ##### a. Compute Cost Per Equivalent Unit Calculate the cost per equivalent unit for both direct materials and conversion costs. * **Note:** Round “Cost per EUP” to 2 decimal places. ##### b. Cost Assignment Using Weighted Average Method Using the weighted average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. * **Note:** Round “Cost per EUP” to 2 decimal places. ### Required a. #### Cost Per Equivalent Unit of Production: Weighted Average Method | | Direct Materials | Conversion | |--------------------------------------|------------------|------------| | Beginning work in process inventory | | | | Current period costs | | | | Total costs | | | | | Costs | Costs | | ÷ Equivalent units of production | EUP | EUP | | Cost per equivalent unit of production (rounded to 2 decimals) | | | ### Required b. #### Cost Assignment—Weighted Average | | | EUP | Cost per EUP | Total cost | |---------------------------------|---------------------|-----|--------------|------------| | **Completed and transferred out** | | | | | | Direct materials | | | | | | Conversion | | | | | | Total costs completed and transferred out | | | | | | **Ending work in process** | | | | | | Direct materials | | | | | | Conversion | | | | | | Total cost of ending work in process | | | | | | **Total costs accounted for** | | | | | ### Explanation #### Graphs and Diagrams In this table, we have two sections: "Required a." and "Required b." These sections are designed to help organize and calculate specific accounting-related quantities. 1. **Cost Per Equivalent Unit of Production: Weighted Average Method (Required a. Section):** - This section contains a table split into two primary columns: Direct Materials and Conversion. - The rows guide you through determining the total costs for beginning work in process inventory and current period costs for both Direct
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