Question

Required information Exercise 8-33 & 8-34 (Static) (LO 8-2,3) The following information applies to the questions displayed below) The Matsui Lubricants plant uses the weighted average method to account for its work-in-process inventories. The accounting records show the following information for a particular day. S 976 272 Beginning WIP inventory Direct materials Conversion costs Current period costs Direct materials Conversion costs 11,440 6,644 Quantity Information is obtained from the manufacturing records and includes the following. Beginning inventory 600 units (60% complete as to materials, 53% complete as to conversion) 4,eee units 1,200 units (40% complete as to materials, Current period units started Ending inventory Next > 10 11 !!! of 16 < Prev search

Answer 1

Answer

• Requirement A

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	3,400	100%	3,400	100%	3,400
Units of ENDING WIP	1,200	40%	480	20%	240
Equivalent Units of Production			3,880		3,640

Equivalent units:
For material = 3880
For Conversion cost = 3640

• Requirement B

COST per EUP			Material		Conversion
Cost of Beginning WIP			$                976.00		$                                        272.00
Cost incurred during the period			$          11,440.00		$                                    6,644.00
Total Costs		Costs	$          12,416.00	Costs	$                                    6,916.00
Equivalent units of production		EUP	3,880	EUP	3,640
Cost per EUP			$              3.20000		$                                      1.90000

Cost per Equivalent unit:
For material = $ 3.20
For Conversion cost = $ 1.90