**Understanding Conversion Costs in Process Inventory**In this section, we will analyze work in process inventory and compute the conversion cost per unit using the weighted-average method.**Scenario:**- There are 2,600 units in the ending work in process inventory.- These units are 100% complete concerning materials but only 30% complete regarding conversion costs.- The total cost of the ending work in process inventory is $8,060.- The per-unit material cost is $1.**Objective:**Calculate the conversion cost per unit using the weighted-average method.**Solution:**- **Step 1:** Determine the total material cost. - Total material cost = Number of units × Per-unit material cost - Total material cost = 2,600 units × $1 = $2,600- **Step 2:** Calculate the conversion cost. - Total conversion cost = Total cost - Total material cost - Total conversion cost = $8,060 - $2,600 = $5,460- **Step 3:** Calculate the equivalent units for conversion costs. - Equivalent units = Number of units × Percentage completion for conversion costs - Equivalent units = 2,600 units × 30% = 780 equivalent units- **Step 4:** Calculate the conversion cost per unit. - Conversion cost per unit = Total conversion cost ÷ Equivalent units - Conversion cost per unit = $5,460 ÷ 780 = $7**Conclusion:**The conversion cost per unit, using the weighted-average method, is $7.This example demonstrates the concept of calculating conversion costs in a process inventory and highlights the importance of understanding production completion percentages.

There were 2,600 units in ending work in process inventory that were 100% complete with regard to material and 30% complete with regard to conversion costs. Ending work in process inventory had a cost of $8,060 and a per-unit material cost of $1. What was the conversion cost per unit using the weighted-average method? Conversion cost per unit $

There were 2,600 units in ending work in process inventory that were 100% complete with regard to material and 30% complete with regard to conversion costs. Ending work in process inventory had a cost of $8,060 and a per-unit material cost of $1. What was the conversion cost per unit using the weighted-average method? Conversion cost per unit $

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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Production data show 23,185 units were transferred out of a stage of production and 9,366 units remained in ending WIP inventory that was 100% complete to material and 52% complete to conversion. The unit material cost is $2 for material and $9 for conversion. What is the amount of inventory transferred out? Round to the nearest whole dollar, no decimals.
Carmelita Inc., has the following information available: Direct materials Conversion costs Costs from Costs from Beginning Inventory Current Period $2,000 6,200 $22,252 150,536 At the beginning of the period, there were 500 units in process that were 60% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,500 units were started and completed. Ending inventory contained 340 units that were 30% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method. The equivalent units of production for direct materials and conversion costs, respectively, were a. 5,340 for direct materials and 4,902 for conversion costs b. 4,902 for direct materials and 4,802 for conversion costs c. 4,602 for direct materials and 4,802 for conversion costs d. 4,840 for direct materials and 4,802 for conversion costs
A1.
Production data show 27,626 units were transferred out of a stage of production and 7,834 units remained in ending WIP inventory that was 100% complete to material and 47% complete to conversion. The unit material cost is $8 for material and $4 for conversion. What is the amount of inventory transferred out? Round to the nearest whole dollar, no decimals.
A company started a new product, and in the first month started 64,735 units. The ending work in process inventory was 16,040 units that were 100% complete with materials and 67% complete with conversion costs. There were 16,040 units to account for, and the equivalent units for materials was $6 per unit while the equivalent units for conversion was $9 per unit. What is the value of the inventory transferred out, using the weighted-average inventory method?
Compute the total costs of the units (gallons) (a) completed and transferred out to the Packaging Department, and (b) in the Department ending Work-in-Process Inventory. Complete the Production Cost Report that you began in Requirement 1 by calculating the costs per equivalent unit in this step, and then by calculating the the total cost of units completed and transferred out and of units in ending inventory in the following step. (Complete all input fields. Enter a "0" for any zero balances. Round the cost per equivalent unit amounts to the nearest cent and all other amounts to the nearest dollar. Abbreviation used: EUP = equivalent units of production.)
Bonita Company's Assembly Department has materials cost at $5 per unit and conversion cost at $10 per unit. There are 29500 units in ending work in process, all of which are 70% complete as to conversion costs. Materials are added at the beginning of the process. How much are total costs to be assigned to inventory? $442500. $354000. $147500. $206500.
A process manufacturer that uses the weighted-average method reports the following. Beginning work in process inventory Units completed and transferred out Ending work in process inventory Equivalent units of production for conversion are: Multiple Choice O 125,200. Units 38,000 108,000 43,000 Conversion Percent Complete 80% 40%
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How to find: * Cost of beginning work in process inventory completed this period. *Cost of units transferred to finished goods during the period. * Cost of ending work in process inventory. * Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. Work in Process—Assembly Department Bal., 6,000 units, 55% completed 18,540 To Finished Goods, 138,000 units ? Direct materials, 141,000 units @ $2.1 296,100 Direct labor 192,900 Factory overhead 75,000 Bal. ? units, 70% completed ?
Vipul k Teng uses the FIFO method of Process Costing. The following amounts were provided:
Carmelita, Inc., has the following information available: Costs from Beginning Inventory Direct materials. Conversion costs $5,000 5,200 Costs from Current Period The cost of completing a unit during the current period was Oa. $45.95 Ob. $36.76 Oc. $30.63 Od. $25.62 $29,600 149,800 At the beginning of the period, there were 400 units in process that were 40% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,500 units were started and completed. Ending inventory contained 400 units that were 27% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process costing method.