Shirley Processing, Incorporated (SPI) makes adhesive tape. The following information on the physical flow of units and costs for month of March: Quantities Beginning work-in-process Started To account for Transferred out Ending work in process Accounted for Physical units Percentage Complete. Materials 107,000 100% Conversion 40% 957,000 1,064,000 975,500 100% 100% 88,500 100% 20% 1,064,000 Cost Beginning work-in-process Current period Total $ 186,570 1,871,298 Direct Materials $ 167,180 1,234,530 Conversion $ 19,390 636,768 Total $ 2,057,868 $ 1,401,710 $ 656,158 Required: a. Compute the equivalent units for the conversion cost calculation for March assuming Shirley Processing. Incorporated uses the weighted-average method. b. Compute the cost per equivalent unit for direct materials and conversion costs for March assuming Shirley Processing, Incorporated uses the weighted-average method. Complete this question by entering your answers in the tabs below. Required A Required B Compute the cost per equivalent unit for direct materials and conversion costs for March assuming Shirley Processing, Incorporated uses the weighted-average method. Note: Round your answers to 2 decimal places. Direct Materials Conversion costs Equivalent Units < Required A Required B
Shirley Processing, Incorporated (SPI) makes adhesive tape. The following information on the physical flow of units and costs for month of March: Quantities Beginning work-in-process Started To account for Transferred out Ending work in process Accounted for Physical units Percentage Complete. Materials 107,000 100% Conversion 40% 957,000 1,064,000 975,500 100% 100% 88,500 100% 20% 1,064,000 Cost Beginning work-in-process Current period Total $ 186,570 1,871,298 Direct Materials $ 167,180 1,234,530 Conversion $ 19,390 636,768 Total $ 2,057,868 $ 1,401,710 $ 656,158 Required: a. Compute the equivalent units for the conversion cost calculation for March assuming Shirley Processing. Incorporated uses the weighted-average method. b. Compute the cost per equivalent unit for direct materials and conversion costs for March assuming Shirley Processing, Incorporated uses the weighted-average method. Complete this question by entering your answers in the tabs below. Required A Required B Compute the cost per equivalent unit for direct materials and conversion costs for March assuming Shirley Processing, Incorporated uses the weighted-average method. Note: Round your answers to 2 decimal places. Direct Materials Conversion costs Equivalent Units < Required A Required B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
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.
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Transcribed Image Text:Shirley Processing, Incorporated (SPI) makes adhesive tape. The following information on the physical flow of units and costs for
month of March:
Quantities
Beginning work-in-process
Started
To account for
Transferred out
Ending work in process
Accounted for
Physical
units
Percentage Complete.
Materials
107,000
100%
Conversion
40%
957,000
1,064,000
975,500
100%
100%
88,500
100%
20%
1,064,000
Cost
Beginning work-in-process
Current period
Total
$ 186,570
1,871,298
Direct
Materials
$ 167,180
1,234,530
Conversion
$ 19,390
636,768
Total
$ 2,057,868
$ 1,401,710
$ 656,158
Required:
a. Compute the equivalent units for the conversion cost calculation for March assuming Shirley Processing. Incorporated uses the
weighted-average method.
b. Compute the cost per equivalent unit for direct materials and conversion costs for March assuming Shirley Processing, Incorporated
uses the weighted-average method.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute the cost per equivalent unit for direct materials and conversion costs for March assuming Shirley Processing,
Incorporated uses the weighted-average method.
Note: Round your answers to 2 decimal places.
Direct Materials
Conversion costs
Equivalent Units
< Required A
Required B
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