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 Percent Complete 65% Total Beginning work in process inventory Units started this period Completed and transferred out. Ending work in process inventory Units 81,000 427,000 405,000 103,000 80% Compute the number of equivalent units of production for both direct materials and conversion for April using the weighted average method. Units Conversion Percent Complete 35% Equivalent units of production: Weighted average method Direct Materials Percent Complete 30% EUP Percent Complete Conversion EUP
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Compute the number of equivalent units of production for both direct materials and conversion for April using the weighted average method (see picture).
![### 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 |
|------------------------|------------------|------------|
| | Percent Complete | Percent Complete |
| Beginning work in process inventory | 81,000 | 65% | 35% |
| Units started this period | 427,000 | - | - |
| Completed and transferred out | 405,000 | - | - |
| Ending work in process inventory | 103,000 | 80% | 30% |
Compute the number of equivalent units of production for both direct materials and conversion for April using the weighted average method.
### Equivalent Units of Production: Weighted Average Method
| Units | Direct Materials | Conversion |
|-------------------------|------------------|------------|
| | Percent Complete | EUP | Percent Complete | EUP |
| Beginning work in process inventory | | | | |
| Units started and completed this period | | | | |
| Ending work in process inventory | | | | |
| **Total** | | | | |
### Explanation of Graphs and Diagrams
The table provided details the production data for the first production department of Stone Incorporated for April. It includes the following information:
1. **Beginning Work in Process Inventory**: The amount of work that started in a previous period but is not yet complete. This includes:
- **Units**: 81,000
- **Direct Materials Completion**: 65%
- **Conversion Completion**: 35%
2. **Units Started This Period**: The number of units that entered production during the current period, which is 427,000.
3. **Units Completed and Transferred Out**: The number of units that were finished and moved out of the department, which totals 405,000 units.
4. **Ending Work in Process Inventory**: The units still in production at the end of the period with their respective completion percentages:
- **Units**: 103,000
- **Direct Materials Completion**: 80%
- **Conversion Completion**: 30%
The second table is designed to help compute the number of equivalent units of production (EUP) for both direct materials and conversion using the weighted average method. EUP is calculated to convert partially completed units into an equivalent number of fully completed](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f96dd47-ce3e-4fb6-9f29-e38e62f29b56%2F9bffaeb8-f960-451e-b01a-f6d0698431f7%2Fh320xhm_processed.png&w=3840&q=75)
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