Newton Corporation uses a process costing system to trace coststhrough several phases of production, starting with the BlendingDepartment and ending with the Packaging Department. Recentcomputer problems have caused some of the company’s accountingrecords to be destroyed. Shown is a partial summary of informationretrieved by accountants from the Blending Department’s Februaryproduction cost report.
| | | |
| Cost Data: Blending Department | | | |
| Direct materials costs in beginning inventory, February 1 | $ | 12,000 | |
| Conversion costs in beginning inventory, February 1 | | 25,200 | |
| Direct materials costs incurred in February | | 162,000 | |
| Conversion costs incurred in February | | 271,000 | |
| Cost per equivalent unit of conversion in February | | 5 | |
| Physical Units: Blending Department | | | |
| Units in process, February 1 | | ? | |
| Units transferred out during February | | 58,000 | |
| Units started in February | | 54,000 | |
| Units in process, February 28 | | 2,000 | |
| Percentage of Completion: BlendingDepartment | | | |
| Direct materials, February 1 | | 100 | % |
| Conversion, February 1 | | ? | |
| Direct materials, February 28 | | 100 | % |
| Conversion, February 28 | | 20 | |
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a. Compute the number of units that were in theBlending Department’s beginning inventory on February 1.
b. Compute the number of units that werestarted and completed by the Blending Department in February.
c. Compute the cost per equivalent unit ofdirect materials and conversion carried forward from January andassigned to the Blending Department’s beginning inventory onFebruary 1.
d. Compute the Blending Department’s cost perequivalent unit of direct materials consumed in February.
