South River Chemical manufactures a product called Zbek. Directmaterials are added at the beginning...

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Accounting

South River Chemical manufactures a product called Zbek. Directmaterials are added at the beginning of theprocess, and conversion activity occurs uniformly throughoutproduction. The beginning work in process inventory is 60% completewith respect to conversion; the ending inventory work in processinventory is 20% complete. The following data pertain toMay:
Units
Work in process, May 1    15,000
Units started during May 60,000
Units completed and transferred out    68,000
Work in process, May 31    7,000

   Direct Materials    Conversion Cost TotalCosts
Cost:
Work in Process, May 1 $16,500 $24,750    $41,250
Costs incurred during May 72,000    162,630   234,630
Totals $88,500 $187,380    $275,880
Compute the following amounts:
1. Using the weighted-average method of process costing, determinethe equivalent units for direct material and conversion. (Pleaseshow your work.)
2. What is the cost per unit of direct material and conversionactivity? (Please show your work.)
3. Determine the cost of the goods completed and transferred outduring May. (Please show your work.)
4. Determine the cost of the ending work in process on May 31.(Please show your work.)

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3.9 Ratings (757 Votes)

PRODUCTION REPORT WEIGHTED AVERAGE METHOD Quantity Schedule and Equivalent Units Quantity Percentage Complete Schedule Materials Conversion Units to be accounted for Beginning 100 60 Work in process beginning 15000 Started into See Answer

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In: AccountingSouth River Chemical manufactures a product called Zbek. Directmaterials are added at the beginning of...South River Chemical manufactures a product called Zbek. Directmaterials are added at the beginning of theprocess, and conversion activity occurs uniformly throughoutproduction. The beginning work in process inventory is 60% completewith respect to conversion; the ending inventory work in processinventory is 20% complete. The following data pertain toMay:UnitsWork in process, May 1 15,000Units started during May 60,000Units completed and transferred out 68,000Work in process, May 31 7,000 Direct Materials Conversion Cost TotalCostsCost:Work in Process, May 1 $16,500 $24,750 $41,250Costs incurred during May 72,000 162,630 234,630Totals $88,500 $187,380 $275,880Compute the following amounts:1. Using the weighted-average method of process costing, determinethe equivalent units for direct material and conversion. (Pleaseshow your work.)2. What is the cost per unit of direct material and conversionactivity? (Please show your work.)3. Determine the cost of the goods completed and transferred outduring May. (Please show your work.)4. Determine the cost of the ending work in process on May 31.(Please show your work.)