Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the companys production schedule for May:
Tons of Pulp Percent Completed
Materials Conversion
WorkinProcess Inventory, May
Started during May
Units to account for
Units from beginning WorkinProcess, which were completed and transferred out during May
Started and completed during May
WorkinProcess Inventory, May
Total units accounted for
The following cost data are available:
WorkinProcess Inventory, May
Direct materials $
Conversion
Costs incurred during May
Direct materials
Conversion
Required:
Calculate the equivalent units of direct materials and conversion during May. Use the FIFO method.
Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the FIFO method.
