The ABC Company manufactures stationary that goes through two processing stages prior to completion. It uses weighted-average method for process costing. Information on work in the first department, Department A is given below for June: Units Materials Conversion Work in process inventory, 1 June 8,000 40% 60% Work in process inventory, 30 June 10,000 60% 40% Materials Conversion Work in process inventory, 1 June $12,220 $10,200 Cost added during June $109,460 $97,920 During June, 100,000 units were started in Department A. Required: a) Determine the number of units completed and transferred to the next department in June. 5) Determine the equivalent units for June for Department A. c) Compute the costs per equivalent unit for June for Department A. (2 marks) (6 marks) (4 marks)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The ABC Company manufactures stationary that goes through two processing stages prior to
completion. It uses weighted-average method for process costing. Information on work in the
first department, Department A is given below for June:
Units Materials Conversion
Work in process inventory, 1 June
8,000
40%
60%
Work in process inventory, 30 June
10,000
60%
40%
Materials
Conversion
Work in process inventory, 1 June
$12,220
$10,200
Cost added during June
$109,460
$97,920
During June, 100,000 units were started in Department A.
Required:
a) Determine the number of units completed and transferred to the next department in June.
b) Determine the equivalent units for June for Department A.
c) Compute the costs per equivalent unit for June for Department A.
(2 marks)
(6 marks)
(4 marks)
Transcribed Image Text:The ABC Company manufactures stationary that goes through two processing stages prior to completion. It uses weighted-average method for process costing. Information on work in the first department, Department A is given below for June: Units Materials Conversion Work in process inventory, 1 June 8,000 40% 60% Work in process inventory, 30 June 10,000 60% 40% Materials Conversion Work in process inventory, 1 June $12,220 $10,200 Cost added during June $109,460 $97,920 During June, 100,000 units were started in Department A. Required: a) Determine the number of units completed and transferred to the next department in June. b) Determine the equivalent units for June for Department A. c) Compute the costs per equivalent unit for June for Department A. (2 marks) (6 marks) (4 marks)
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