FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method:
Units completed
Units in EWIP X Fraction complete (36,000 X 60%)
Equivalent units of output
June's costs to account for are as follows:
BWIP (10,000 units, 80% complete)
Materials
Conversion costs
Total
Required:
91,000
21,600
112,600
$50,000
156,000
95,000
$301,000
1. Calculate the unit cost for June using the weighted average method. Round your answer to the nearest cent.
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Transcribed Image Text:Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Units completed Units in EWIP X Fraction complete (36,000 X 60%) Equivalent units of output June's costs to account for are as follows: BWIP (10,000 units, 80% complete) Materials Conversion costs Total Required: 91,000 21,600 112,600 $50,000 156,000 95,000 $301,000 1. Calculate the unit cost for June using the weighted average method. Round your answer to the nearest cent.
per unit
2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. If required, round unit cost to the nearest cent in
intermediate calculations and final answers to the nearest dollar.
Cost of ending work in process
Cost of the goods transferred out
3. Cassien had just finished implementing a series of measures designed to reduce the unit cost to $2.00 and was assured that this had been achieved and should be
realized for June's production. Yet, upon seeing the unit cost for June, the president of the company was disappointed. Can you explain why the full effect of the cost
reductions may not show up in June? What can you suggest to overcome this problem?
$
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Transcribed Image Text:per unit 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. If required, round unit cost to the nearest cent in intermediate calculations and final answers to the nearest dollar. Cost of ending work in process Cost of the goods transferred out 3. Cassien had just finished implementing a series of measures designed to reduce the unit cost to $2.00 and was assured that this had been achieved and should be realized for June's production. Yet, upon seeing the unit cost for June, the president of the company was disappointed. Can you explain why the full effect of the cost reductions may not show up in June? What can you suggest to overcome this problem? $
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