Question

Suburbia Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for February 2016 are as follows:

Production data:
In process, beginning of month (20% converted)	1,000 units
Started during February	5,000 units
Completed and transferred to finished goods	4,500 units
In process, end of month (60% converted)	1,500 units
Manufacturing costs:
Work in process, beginning (Direct Materials $3,000; Conversion Costs: $18,360)	$21,360
Direct Materials added during peroid	$45,000
Conversion Costs added during peroid	$154,440

Required:
Calculate the Following using the weighted average method:

Equivalent Units of Production for Direct materials	(Do not enter commas in answer for example 5,000 should be entered as 5000)
Equivalent Units of Production for Conversion Costs	(Do not enter commas in answer for example 5,000 should be entered as 5000)
Cost per Equivalent Unit – Direct Materials	$ (Round to 2 decimal places)
Cost per Equivalent Unit – Conversion Costs	$ (Round to 2 decimal places)
Total value of units transferred out	$.00 (Round to the nearest whole dollar and do not enter dollar signs or commas in answer for example $5,000 should be entered as 5000)
Total value of Ending Inventory	$.00 (Round to the nearest whole dollar and do not enter dollar signs or commas in answer for example $5,000 should be entered as 5000)

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

B Answer 6000 5400 2 Answer 3 Equivalent unit for production of direct material 4 Equivalent unit for production of Conersion cost 5 Cost per equivalent unit direct material 6 Cost per equivalent unit Conversion cost 7 Total value of units transferred out 8 Total value of Ending Inventory 180000 40800 10 Notes and calculations 11 13 Particular 14 Unit Completed and transferred out 15 Units in ending inventory 16 Equivalent unit Suburbia Company Statement of equivalent units of production Physical units % completion Material 4500 100 1500 100 % completion Conversion cost 4500 100 4500 1500 900 6000 5400 60 6000

m 5 Cost Per Equivalent unit Material conversion cost Total 7 Costs to account for 3 Cost in beginning work in process Cost incurred during the period Total cost to account for 1 Equivalent units 2 Cost per equivalent unit 3000 45000 48000 6000 18360 154440 172800 5400 21360 199440 220800 32 40.00 5 Cost of units completed andtransferred out 5 = unit completed * cost per unit 7 = 4500 *40 B = $ 180000 Cost of work in process as on January 31 work in process inventory 1 = (equivalent material * cost per equivalent unit of material) + ( equivalent conversion units * equivalent cost per equivalent unit of conversion cost) 2 = (1500*8)+(900*32) B = $ 40800 UI