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 Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry)

Accounting Oct 26, 2020

 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

Expert Solution

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

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