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Homework answers / question archive / Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry)
Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February: Work-in-process inventory, February 1 Direct materials: 100% complete Conversion: 20% complete Units started during February Units completed during February and transferred out Work-in-process inventory, February 29 Direct materials: 100% complete Conversion: 40% complete Costs incurred during February Direct materials Conversion 3,100 trusses $10,580 $15,358 18,100 trusses 17,100 trusses $59, 140 $92,192 Required Using the FIFO method, calculate the following: 1-a. Costs per equivalent unit. (Round your answers to 4 decimal places.) 1-6. Cost of goods completed and transferred out. (Do no round your intermediate calculations. Round your final answer to the nearest whole dollar.) 1-C. Costs remaining in the Work-in-Process Inventory account. (Do no round your intermediate calculations. Round your final answer to the nearest whole dollar.) 2. Assume that you are the company's controller. The production department's February equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 40 to 60% to lower the unit costs. how much would unit cost be affected by
Question Number | Particulars | Direct Materials | Conversion | Total |
1a | Cost per EU | 3.2674 | 5.0879 | |
1b | Cost of goods completed & transferred out | 56324 | 99206 | 155530 |
1c | Cost remaining in the WIP inventory account | 13396 | 8344 | 21740 |
2 | The weighted average cost per equivalent unit | Decreases | by | 0.2203 |
Workings
please see the attached file.