Windsor's is a brand of lotion created specifically for sensitive skin. The company, which goes by the same name, manufactures in small batches so the lotion retains its special qualities. The batch in process on December 31 included 100 units, determined to be 60% complete as to conversion costs. DM costs had already been added, as all DM is added at the very beginning of processing. During January, Windsor's started another 1,900 units, and by January 31, 1,900 units were completed, leaving 100 units still in process. Units in ending WIP Inventory were 50% complete for conversion costs. The following costs existed or were added to the WIP Inventory account in January. Costs in beginning WIP Inventory (from last period) Costs added to WIP Inventory this period Total costs to account for (a) Windsor's uses the weighted-average method of process costing. Your answer is correct. Total equivalent units of work done (b) Cost per equivalent unit $ Total cost of units completed Total Costs $ Complete Steps 1 and 2 of the template to determine the equivalent units of work done during January. Cost of units in ending inventory $ $718 3,217 $3,935 DM DM 2000 DM $298 $ 1,102 Complete Steps 3-5 of the template to determine the cost per equivalent unit and to assign DM costs and conversion costs to the physical units of the period. Carefully label the total cost of units completed. (Round answers to 2 decimal places, e.g. 15.25.) $1,400 Conversion Costs $420 2,115 $2,535 Conversion Cost 1950 Conversion Cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Transcribed Image Text:Windsor's is a brand of lotion created specifically for sensitive skin. The company, which goes by the same name, manufactures in small batches so the lotion retains its special qualities. The batch in process on December 31 included 100 units, determined to be 60% complete as to conversion costs. DM costs had already been added, as all DM is added at the very beginning of processing. During January, Windsor's started another 1,900 units, and by January 31, 1,900 units were completed, leaving 100 units still in process. Units in ending WIP Inventory were 50% complete for conversion costs. The following costs existed or were added to the WIP Inventory account in January. Costs in beginning WIP Inventory (from last period) Costs added to WIP Inventory this period Total costs to account for (a) Windsor's uses the weighted-average method of process costing. Your answer is correct. Total equivalent units of work done (b) Cost per equivalent unit $ Total cost of units completed Cost of units in ending inventory Total Costs $ $ $718 3,217 DM $3,935 Complete Steps 1 and 2 of the template to determine the equivalent units of work done during January. DM 2000 DM $298 $ 1,102 $1,400 Complete Steps 3-5 of the template to determine the cost per equivalent unit and to assign DM costs and conversion costs to the physical units of the period. Carefully label the total cost of units completed. (Round answers to 2 decimal places, e.g. 15.25.) Conversion Costs $420 Conversion Cost 2,115 $2,535 Conversion Cost 1950

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