Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company's production schedule for May: Work-in-Process Inventory, May 1 Started during May Units to account for Units from beginning Work-in-Process, which were completed and transferred out during May Started and completed during May Work-in-Process Inventory, May 31 Total units accounted for The following cost data are available: Work-in-Process Inventory, May 1 Direct materials Conversion Costs incurred during May Direct materials Conversion $ 52,060 19,200 236,550 392,000 Percent Completed Tons of Pulp Materials Conversion 100% 4,000 50% 15,000 19,000 4,000 9,000 6,000 19,000 100% 50% Required: 1. Calculate the equivalent units of direct materials and conversion during May. Use the FIFO method. 2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the FIFO method.
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company's production schedule for May: Work-in-Process Inventory, May 1 Started during May Units to account for Units from beginning Work-in-Process, which were completed and transferred out during May Started and completed during May Work-in-Process Inventory, May 31 Total units accounted for The following cost data are available: Work-in-Process Inventory, May 1 Direct materials Conversion Costs incurred during May Direct materials Conversion $ 52,060 19,200 236,550 392,000 Percent Completed Tons of Pulp Materials Conversion 100% 4,000 50% 15,000 19,000 4,000 9,000 6,000 19,000 100% 50% Required: 1. Calculate the equivalent units of direct materials and conversion during May. Use the FIFO method. 2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the FIFO method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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.
Topic Video
Question
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate the equivalent units of direct materials and conversion during May. Use the FIFO method.
Equivalent
Units
Direct Materials
Conversion
< Required 1
Required 2 >
Required 1 Required 2
Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the FIFO method. (Round your
answers to 2 decimal places.)
Direct Materials
Conversion
Costs per
Equivalent Unit
< Required 1
Required 2 >
Transcribed Image Text:Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing
system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are
incurred uniformly throughout the process. This is the company's production schedule for May:
Work-in-Process Inventory, May 1
Started during May
Units to account for
Units from beginning Work-in-Process, which
were completed and transferred out during May
Started and completed during May
Work-in-Process Inventory, May 31
Total units accounted for
The following cost data are available:
Work-in-Process Inventory, May 1
Direct materials
Conversion
Costs incurred during May
Direct materials
Conversion
$
52,060
19, 200
236,550
392,000
Tons of
Pulp
4,000
15,000
19,000
4,000
9,000
6,000
19,000
Percent Completed
Materials Conversion
100%
50%
100%
50%
Required:
1. Calculate the equivalent units of direct materials and conversion during May. Use the FIFO method.
2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the FIFO method.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
Expert Answers to Latest Homework Questions
Q: question is attached. thank you
Q: Please do theoretical calculation q1 q2 and q3 step by step no ai solution thank you
Q: Need Answer of this Accounting Question with explanation
Q: what is the return on common stockholders equity ?
Q: Need Accounting Answer with correct answer
Q: A pipeline that transports water at rate of 3 m³/s branches out into two parallel pipes made of…
Q: follow this questions and give true answer with short details
Q: Water is pumped from the reservoir A using a pump that supplies 3 kW of power. Determine the head…
Q: Need Answer of this General Accounting Question
Q: which option is correct?
Q: I need correct answer with explanation
Q: Creswell corporation...Accounting question
Q: The sample is prepared by placing a single analgesic tablet in a small beaker and adding 10 mL of…
Q: Solution wanted help me
Q: financial accounting V
Q: General Accounting
Q: Labor Cost? Step by step Answer
Q: Give me Labor Cost.
Q: Camia co.s contribution mar...accounting question
Q: For the BJT amplifier circuit of Fig. 14-9, determine the lower- and higher-cutoff
frequencies.…
Q: ESHBC Corp is a semiconductor manufacturing company based in Argentina with a beta of 1.25 and a…