Homework answers / question archive / Exe 4-17) Quantity Schedule, Equivalent Units, and Cost per Equivalent Unit-Weighted Average Method Pureform, Inc

Exe 4-17) Quantity Schedule, Equivalent Units, and Cost per Equivalent Unit-Weighted Average Method Pureform, Inc

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Exe 4-17) Quantity Schedule, Equivalent Units, and Cost per Equivalent Unit-Weighted Average Method

Pureform, Inc., Manufactures a product that passes through two departments. Data for a recent month for the first department follow:

                                                             

Units            Materials             Labor           Overhead

Work in process, beginning………5,000             $4,320                   $1,040             $1,790

Units started in process…………..45,000

Units transferred out………………42,000

Work in process, ending…………….8, 000

Cost added during the month…………………. $52,800                 21,500             $32,250

 

            The beginning work in process inventory was 80% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 75% complete with respect to materials and 50% complete with respect to labor and overhead.

Requires:

1. Assume that the company uses the weighted-average method of accounting for units and costs. Prepare a quantity schedule and a computation of equivalent units for the month for the first department.
2. Determine the costs per equivalent unit for the month.

 

1.)

                                                                            Materials                   Conversion

Units transferred to the next department…………42,000                      42,000

Work in process,

8,000 units x 75% complete with respect to materials……6,000

8,000 units x 50% complete with respect to conversion……………….4, 000

Equivalent units of production………………….48, 000                           46,000

Ok I don’t know if this is correct.

         

Quantity Schedule:

Units to be accounted for:

Work in process, (materials 80%complete, conversion 60%)……………….5, 000

Started into production…………45,000

Total units to be accounted for……….50, 000

 

Units accounted for as follows: .Materials             Conversion

Transferred to next dept…………….42, 000

Work in process,    (materials 75% complete, conversion 50%complete)…8,000

Total units accounted for 50,000     (42,000+8,000=50,000)

8,000 units x 75% =6,000 equivalent units

8,000 units x 50%= 4,000 equivalent units

 

Equivalent units

MATERIALS 48,000 and Conversion 46,000/

I need help doing the cost per equivalent unit

I can’t figure out the total cost.

I can come over tomorrow after work or whatever you don’t have class. It is not due until Sunday.

 

Exe 4-18). Quantity Schedule, Equivalent Units, and Cost per Equivalent Unit-FIFO Method

Refer to data in exe 4-17

Required:

1. Assume that the company uses the FIFO method of accounting for units and costs. Prepare a quantity schedule and a computation of equivalent units for the month for the first processing department.
2. Determine the costs per equivalent unit for the month.