Answer:
Explanation:
Initial WIP inventory 74000
Add: Units initiated in May 390000
Subtract: Final inventory 34000
Completed and moved units 430000
1 Equivalent Units
Whole units Materials Conversion
Initial WIP inventory 74000 74000 74000
Units started and finished 356000 356000 356000
Final inventory 34000 23800 10200
Total units accounted for 464000 453800 440200
Materials Conversion
Production equivalent units 453800 440200
2
Cost Information: Total Material Conversion
Initial WIP inventory 142800 98800 44000
Costs incurred during May 755960 513830 242130
Total costs needing accounting 898760 612630 286130
Divided by Equivalent units 453800 440200
Cost per Equivalent unit 2.00 1.35 0.65
Materials Conversion
Cost per Equivalent unit 1.35 0.65
3
Cost Allocation:
Ending Work in process:
Material 32130
Conversion 6630
Total Ending Work in process 38760
4
Cost of completed and transferred units
Material 580500
Conversion 279500
Total costs 860000
5
Costs to be accounted for:
Initial WIP inventory 142800
Current expenses 755960
Overall costs to be accounted for 898760
Costs accounted for include:
Cost of completed and moved units 860000
Cost of ending work in process 38760
Overall accounted costs 898760
