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: Tons of Pulp Percent Completed Materials Conversion Work-in-Process Inventory, May 1 5,000 100% 50% Started during May 15,000 Units to account for 20,000 Units from beginning Work-in-Process, which were completed and transferred out during May 5,000 Started and completed during May 12,000 Work-in-Process Inventory, May 31 3,000 100% 50% Total units accounted for 20,000 The following cost data are available: Work-in-Process Inventory, May 1 Direct materials $ 94,000 Conversion 133,120 Costs incurred during May Direct materials 229,800 Conversion 376,000 Required: 1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method. 2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average 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: Tons of Pulp Percent Completed Materials Conversion Work-in-Process Inventory, May 1 5,000 100% 50% Started during May 15,000 Units to account for 20,000 Units from beginning Work-in-Process, which were completed and transferred out during May 5,000 Started and completed during May 12,000 Work-in-Process Inventory, May 31 3,000 100% 50% Total units accounted for 20,000 The following cost data are available: Work-in-Process Inventory, May 1 Direct materials $ 94,000 Conversion 133,120 Costs incurred during May Direct materials 229,800 Conversion 376,000 Required: 1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method. 2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a
| Tons of Pulp | Percent Completed | ||
|---|---|---|---|
| Materials | Conversion | ||
| Work-in-Process Inventory, May 1 | 5,000 | 100% | 50% |
| Started during May | 15,000 | ||
| Units to account for | 20,000 | ||
| Units from beginning Work-in-Process, which were completed and transferred out during May | 5,000 | ||
| Started and completed during May | 12,000 | ||
| Work-in-Process Inventory, May 31 | 3,000 | 100% | 50% |
| Total units accounted for | 20,000 |
The following cost data are available:
| Work-in-Process Inventory, May 1 | |
|---|---|
| Direct materials | $ 94,000 |
| Conversion | 133,120 |
| Costs incurred during May | |
| Direct materials | 229,800 |
| Conversion | 376,000 |
Required:
1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method.
2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.
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