The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day. Beginning WIP inventory Direct materials $ 986 Conversion costs 317 Current period costs Direct materials 12,390 Conversion costs 6,083 Quantity information is obtained from the manufacturing records and includes the following. Beginning inventory 600 units (60% complete as to materials, 53% complete as to conversion) Current period units started 4,300 units Ending inventory 1,200 units (40% complete as to materials, 25% complete as to conversion) Required: a. Compute the equivalent units for the materials and conversion cost calculations. b. Compute the cost per equivalent unit for direct materials and conversion costs.
The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day. Beginning WIP inventory Direct materials $ 986 Conversion costs 317 Current period costs Direct materials 12,390 Conversion costs 6,083 Quantity information is obtained from the manufacturing records and includes the following. Beginning inventory 600 units (60% complete as to materials, 53% complete as to conversion) Current period units started 4,300 units Ending inventory 1,200 units (40% complete as to materials, 25% complete as to conversion) Required: a. Compute the equivalent units for the materials and conversion cost calculations. b. Compute the cost per equivalent unit for direct materials and conversion costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day.
| Beginning WIP inventory | |||
| Direct materials | $ | 986 | |
| Conversion costs | 317 | ||
| Current period costs | |||
| Direct materials | 12,390 | ||
| Conversion costs | 6,083 | ||
Quantity information is obtained from the manufacturing records and includes the following.
| Beginning inventory | 600 | units | (60% complete as to materials, 53% complete as to conversion) |
| Current period units started | 4,300 | units | |
| Ending inventory | 1,200 | units | (40% complete as to materials, 25% complete as to conversion) |
Required:
a. Compute the equivalent units for the materials and conversion cost calculations.
b. Compute the cost per equivalent unit for direct materials and conversion costs.
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