The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day.           Beginning WIP inventory       Direct materials $ 986   Conversion costs   317   Current period costs       Direct materials   12,390   Conversion costs   6,083       Quantity information is obtained from the manufacturing records and includes the following.           Beginning inventory 600 units (60% complete as to materials, 53% complete as to conversion) Current period units started 4,300 units   Ending inventory 1,200 units (40% complete as to materials, 25% complete as to conversion)     Required: a. Compute the equivalent units for the materials and conversion cost calculations. b. Compute the cost per equivalent unit for direct materials and conversion costs.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 14PA: Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units....
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The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day.

 

       
Beginning WIP inventory      
Direct materials $ 986  
Conversion costs   317  
Current period costs      
Direct materials   12,390  
Conversion costs   6,083  
 

 

Quantity information is obtained from the manufacturing records and includes the following.

 

       
Beginning inventory 600 units (60% complete as to materials,
53% complete as to conversion)
Current period units started 4,300 units  
Ending inventory 1,200 units (40% complete as to materials,
25% complete as to conversion)
 

 

Required:

a. Compute the equivalent units for the materials and conversion cost calculations.

b. Compute the cost per equivalent unit for direct materials and conversion costs.

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