WP Manufactures a machine tool that goes through three processing departments- Cutting, fixing and polishing. Raw materials are introduced at the start of the work in the cutting department itself. The Work-in-process T-account is as follows: Work-in-Process - Cutting Department Inventory, May 1 $273,600 Completed and transferred |to the Mixing department ? Materials $522,800 Conversion Inventory, May 3 $343,104 ? The May 1 work in process inventory consisted of 95,000 pounds with $155,800 in materials cost and $117,800 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 282,000 pounds were started into production. The May 31 inventory consisted of 127,000 pounds that were 100% complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method to account for units and costs. Determine the equivalent units of production for May for Materials as well as Conversion Cost. a. Equivalent units for Materials are 389,000 and for conversion cost are 338,900. b. Equivalent units for Materials are 338,900 and for conversion cost are 338,900. c. Equivalent units for Materials are 377,000 and for conversion cost are 338,900. d. Equivalent units for Materials are 377,000 and for conversion cost are 383,900.
WP Manufactures a machine tool that goes through three processing departments- Cutting, fixing and polishing. Raw materials are introduced at the start of the work in the cutting department itself. The Work-in-process T-account is as follows: Work-in-Process - Cutting Department Inventory, May 1 $273,600 Completed and transferred |to the Mixing department ? Materials $522,800 Conversion Inventory, May 3 $343,104 ? The May 1 work in process inventory consisted of 95,000 pounds with $155,800 in materials cost and $117,800 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 282,000 pounds were started into production. The May 31 inventory consisted of 127,000 pounds that were 100% complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method to account for units and costs. Determine the equivalent units of production for May for Materials as well as Conversion Cost. a. Equivalent units for Materials are 389,000 and for conversion cost are 338,900. b. Equivalent units for Materials are 338,900 and for conversion cost are 338,900. c. Equivalent units for Materials are 377,000 and for conversion cost are 338,900. d. Equivalent units for Materials are 377,000 and for conversion cost are 383,900.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:WP Manufactures a machine tool that goes through three processing departments- Cutting,
fixing and polishing. Raw materials are introduced at the start of the work in the cutting
department itself. The Work-in-process T-account is as follows:
Work-in-Process - Cutting Department
Inventory, May 1 $273,600 Completed and transferred
|to the Mixing department
?
Materials
Conversion
|Inventory, May 3|
$522,800
$343,104
?
The May 1 work in process inventory consisted of 95,000 pounds with $155,800 in
materials cost and $117,800 in conversion cost. The May 1 work in process inventory was
100% complete with respect to materials and 80% complete with respect to conversion.
During May, 282,000 pounds were started into production. The May 31 inventory consisted
of 127,000 pounds that were 100% complete with respect to materials and 70% complete
with respect to conversion. The company uses the weighted-average method to account for
units and costs. Determine the equivalent units of production for May for Materials as well
as Conversion Cost.
a. Equivalent units for Materials are 389,000 and for conversion cost are 338,900.
b. Equivalent units for Materials are 338,900 and for conversion cost are 338,900.
c. Equivalent units for Materials are 377,000 and for conversion cost are 338,900.
d. Equivalent units for Materials are 377,000 and for conversion cost are 383,900.
Answer
A
OB
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