90.2K

Verified Solution

Link Copied!

Prepare complete solutions. Show ALL calculations and label the final answers. You must show your calculations to receive credit. Problem 1 - Equivalent Units of Production (24 points) Sandy Schoar Surfboards, Inc. manufactures surfboards. All materials are added at the beginning of the production process. On June 1, there were 3,600 units which were 70% complete. During June, there were 26,500 started and 25,800 units completed and transferred out, and 4,300 units in process on June 30, which were 100% complete for direct materials and 50% complete for conversion costs. Sandy Schoar uses the weighted average method of inventory costing. The Equivalent Units of Production for Sandy Schoar Surfboards for June 2018 are as follows: DM DL/FOH Equivalent Units Completed and transferred out 25,800 25,800 Ending Inventory 4.300 2,150 Equivalent Units of Production 30,100 27,950 The Beginning Work in Process is: Materials $27,950, Direct Labor $17,840, FOH $13,380. The costs charged to Work in Process during June are: Direct Materials $378,000, Direct Labor $243,400, FOH S182,550. Determine the following. Show your calculations. a. Cost per equivalent unit for DM and Conversion Costs b. Cost of units completed and transferred out c. Cost of ending work in process inventory

Answer & Explanation Solved by verified expert

See Answer