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Required information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct Materials Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Units 82,000 The production department had the cost information below. Conversion Costs added this period Direct materials Conversion Total costs to account for 432,000 410,000 104,000 $206,850 35,490 1,512,630 991,230 Percent Complete 70% 85% $ 242,340 2,503,860 $ 2,746,200 Conversion Percent Complete 30% 35% a. Compute cost per equivalent unit for both direct materials and conversion. Note: Round "Cost per EUP" to 2 decimal places. b. Using the weighted average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. Note: Round "Cost per FUP" to 2 decimal places

Required information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct Materials Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Units 82,000 The production department had the cost information below. Conversion Costs added this period Direct materials Conversion Total costs to account for 432,000 410,000 104,000 $206,850 35,490 1,512,630 991,230 Percent Complete 70% 85% $ 242,340 2,503,860 $ 2,746,200 Conversion Percent Complete 30% 35% a. Compute cost per equivalent unit for both direct materials and conversion. Note: Round "Cost per EUP" to 2 decimal places. b. Using the weighted average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. Note: Round "Cost per FUP" to 2 decimal places

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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## Required a. ### Cost per Equivalent Unit of Production: Weighted Average Method | | Direct Materials | Conversion | |------------------------------------|------------------|-------------| | Total Costs | | | | + Equivalent units of production | EUP | EUP | | | | | | **Cost per equivalent unit of production (rounded to 2 decimals)** | **0** | **0** | ## Required b. ### Cost Assignment—Weighted Average | | EUP | Cost per EUP | Total Cost | |--------------------------------------|-----|------------------|-------------| | **Completed and transferred out** | | | | | Direct materials | | | | | Conversion | | | | | **Total costs completed and transferred out** | | | | | | | | | | **Ending work in process** | | | | | Direct materials | EUP | $ **0.00** | $ **0.00** | | Conversion | | $ **0.00** | $ **0.00** | | **Total cost of ending work in process** | | | | | **Total costs accounted for** | | | | ### Diagram/Graph Explanation The provided visual is a table used for calculating and assigning production costs using the weighted average method. It has two main sections: 1. **Cost per Equivalent Unit of Production: Weighted Average Method** - This section of the table is used to calculate the cost per equivalent unit of direct materials and conversion by dividing the total costs by the equivalent units of production (EUP). - The result is rounded to two decimal places. 2. **Cost Assignment—Weighted Average** - This section allocates the calculated costs to units that are completed and transferred out as well as to the ending work in process. - It includes sections for direct materials and conversion with columns for EUP, cost per EUP, and the total cost for each. Both sections are currently blank, indicating where specific production cost data should be entered.
Transcribed Image Text:## Required a. ### Cost per Equivalent Unit of Production: Weighted Average Method | | Direct Materials | Conversion | |------------------------------------|------------------|-------------| | Total Costs | | | | + Equivalent units of production | EUP | EUP | | | | | | **Cost per equivalent unit of production (rounded to 2 decimals)** | **0** | **0** | ## Required b. ### Cost Assignment—Weighted Average | | EUP | Cost per EUP | Total Cost | |--------------------------------------|-----|------------------|-------------| | **Completed and transferred out** | | | | | Direct materials | | | | | Conversion | | | | | **Total costs completed and transferred out** | | | | | | | | | | **Ending work in process** | | | | | Direct materials | EUP | $ **0.00** | $ **0.00** | | Conversion | | $ **0.00** | $ **0.00** | | **Total cost of ending work in process** | | | | | **Total costs accounted for** | | | | ### Diagram/Graph Explanation The provided visual is a table used for calculating and assigning production costs using the weighted average method. It has two main sections: 1. **Cost per Equivalent Unit of Production: Weighted Average Method** - This section of the table is used to calculate the cost per equivalent unit of direct materials and conversion by dividing the total costs by the equivalent units of production (EUP). - The result is rounded to two decimal places. 2. **Cost Assignment—Weighted Average** - This section allocates the calculated costs to units that are completed and transferred out as well as to the ending work in process. - It includes sections for direct materials and conversion with columns for EUP, cost per EUP, and the total cost for each. Both sections are currently blank, indicating where specific production cost data should be entered.
### Required Information **[The following information applies to the questions displayed below.]** The first production department of Stone Incorporated reports the following for April: | | Direct Materials | Conversion | |----------------------------------------|------------------|------------| | Units | Percent Complete | Percent Complete | | Beginning work in process inventory | 82,000 | 70% | 30% | | Units started this period | 432,000 | | | | Completed and transferred out | 410,000 | | | | Ending work in process inventory | 104,000 | 85% | 35% | The production department had the cost information below. | | | |-------------------------------------------------------------------|-------| | Beginning work in process inventory | | | Direct materials | $206,850 | | Conversion | $35,490 | | | $242,340 | | Costs added this period | | | Direct materials | $1,512,630 | | Conversion | $991,230 | | | $2,503,860 | | **Total costs to account for** | **$2,746,200** | ### Tasks a. Compute cost per equivalent unit for both direct materials and conversion. **Note: Round "Cost per EUP" to 2 decimal places.** b. Using the weighted average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. **Note: Round "Cost per EUP" to 2 decimal places.**
Transcribed Image Text:### Required Information **[The following information applies to the questions displayed below.]** The first production department of Stone Incorporated reports the following for April: | | Direct Materials | Conversion | |----------------------------------------|------------------|------------| | Units | Percent Complete | Percent Complete | | Beginning work in process inventory | 82,000 | 70% | 30% | | Units started this period | 432,000 | | | | Completed and transferred out | 410,000 | | | | Ending work in process inventory | 104,000 | 85% | 35% | The production department had the cost information below. | | | |-------------------------------------------------------------------|-------| | Beginning work in process inventory | | | Direct materials | $206,850 | | Conversion | $35,490 | | | $242,340 | | Costs added this period | | | Direct materials | $1,512,630 | | Conversion | $991,230 | | | $2,503,860 | | **Total costs to account for** | **$2,746,200** | ### Tasks a. Compute cost per equivalent unit for both direct materials and conversion. **Note: Round "Cost per EUP" to 2 decimal places.** b. Using the weighted average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. **Note: Round "Cost per EUP" to 2 decimal places.**
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