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With the information given how do I calculate the current cost conversion?

With the information given how do I calculate the current cost conversion?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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With the information given how do I calculate the current cost conversion? 

Support 2 Dashboard Product Cost Report-Weighted Average Method Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2016 were as follows: Cost of beginning inventory Direct material $14,700 Conversion costs 24,885 Costs added in Department 1 Direct material $443,100 Direct labor 447,825 Manufacturing overhead 304,695 1.195,620 Department 1 handled the following units during May: Units in process, May 1 2,000 Units started in Department 1 40,000 Units transferred to Department 2 39,000 Units in process, May 31 3,000 On average, the May 1 units were 30% complete. The May 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Reston uses the weighted average me process costing. Required Prepare the product cost report for Department 1 for May. Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number. Reston Manufacturing Corporation Department 1 Flow of Units and Equivalent Units Calculations, May 2016 Equivalent Units % Work Direct % Work Conversion Done Materials Done Costs Complete/Transferred 39000 100 % V 39000 v 100 % V 39000 3000 v 100 96 v 3000 60 % v 1800 v Ending Inventory 42000 40800 V Total 42000 Product Cost Report Direct Conversion Materials Costs 39585 14700 24885 V Beginning Inventory 443100 v 1338750 x Current 0 x $ 457800 vS 0 x Total Costs to Account For 42000 v 40800 v + Total Equivalent Units 10.9 $ 1212 Average cost / Equivalent unit (round four decimal places) 1/2120
Transcribed Image Text:Support 2 Dashboard Product Cost Report-Weighted Average Method Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2016 were as follows: Cost of beginning inventory Direct material $14,700 Conversion costs 24,885 Costs added in Department 1 Direct material $443,100 Direct labor 447,825 Manufacturing overhead 304,695 1.195,620 Department 1 handled the following units during May: Units in process, May 1 2,000 Units started in Department 1 40,000 Units transferred to Department 2 39,000 Units in process, May 31 3,000 On average, the May 1 units were 30% complete. The May 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Reston uses the weighted average me process costing. Required Prepare the product cost report for Department 1 for May. Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number. Reston Manufacturing Corporation Department 1 Flow of Units and Equivalent Units Calculations, May 2016 Equivalent Units % Work Direct % Work Conversion Done Materials Done Costs Complete/Transferred 39000 100 % V 39000 v 100 % V 39000 3000 v 100 96 v 3000 60 % v 1800 v Ending Inventory 42000 40800 V Total 42000 Product Cost Report Direct Conversion Materials Costs 39585 14700 24885 V Beginning Inventory 443100 v 1338750 x Current 0 x $ 457800 vS 0 x Total Costs to Account For 42000 v 40800 v + Total Equivalent Units 10.9 $ 1212 Average cost / Equivalent unit (round four decimal places) 1/2120
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