Question

ONLY THE HIGHLIGHTED PORTION IS INCORRECT. CAN SOMEONE HELP?
Exercise 6-34 Equivalent Units; Weighted-Average and FIFO Equivalent Unit Cost Pablo Company calculates the cost for an equivalent unit of production using process costing. $ 44,000 17,600 $ 61,600 52,400 52,400 22,000 Data for June Work-in-process inventory, June 1: 22,000 units Direct materials: 100% complete Conversion: 40% complete Balance in work-in-process, June 1 Units started during June Units completed and transferred out Work-in-process inventory, June 30 Direct materials: 100% complete Conversion: 80% complete Costs incurred during June Direct materials Conversion costs Direct labor Applied overhead Total conversion costs $151,960 151,960 193,880 $345,840

Answer 1

Solution:

Weighted average:

Statement of equivalent production
Particulars	Direct materials	% completion	Equivalent mat	Conversion	% completion	Equivalent conv
Opening WIP	22,000	100%	22,000	22,000	100%	22,000
Units started and completed(52,400 - 22,000)	30,400	100%	30,400	30,400	100%	30,400
Closing WIP	22,000	100%	22,000	22,000	80%	17,600
Equivalengt units			74,400			70,000
Opening WIP costs			44,000			17,600
Current month costs			151,960			345,840
Total costs			195,960			363,340
Cost per equivalent units			2.63			5.19

FIFO

Statement of equivalent production
Particulars	Direct materials	% completion	Equivalent mat	Conversion	% completion	Equivalent conv
Opening WIP	22,000	0	-	22,000	60%	13,200
Units started and completed(52,400 - 22,000)	30,400	100%	30,400	30,400	100%	30,400
Closing WIP	22,000	100%	22,000	22,000	80%	17,600
Equivalengt units			52,400			61,200
Current month costs			151,960			345,840
Cost per equivalent units			2.9			5.65