Question

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 company’s production schedule for May:

		Percent Completed
	Tons of Pulp	Materials		Conversion
Work-in-Process Inventory, May 1	5,000	100	%	50	%
Started during May	12,000
Units to account for	17,000
Units from beginning Work-in-Process, which were completed and transferred out during May	5,000
Started and completed during May	7,200
Work-in-Process Inventory, May 31	4,800	100	%	50	%
Total units accounted for	17,000

The following cost data are available:

Work-in-Process Inventory, May 1
Direct materials	$	73,690
Conversion		23,494
Costs incurred during May
Direct materials		188,280
Conversion		315,810

Required:

1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method.

2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.

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 company’s production schedule for May:

		Percent Completed
	Tons of Pulp	Materials		Conversion
Work-in-Process Inventory, May 1	5,000	100	%	50	%
Started during May	12,000
Units to account for	17,000
Units from beginning Work-in-Process, which were completed and transferred out during May	5,000
Started and completed during May	7,200
Work-in-Process Inventory, May 31	4,800	100	%	50	%
Total units accounted for	17,000

The following cost data are available:

Work-in-Process Inventory, May 1
Direct materials	$	73,690
Conversion		23,494
Costs incurred during May
Direct materials		188,280
Conversion		315,810

Required:

1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method.

2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.

A. Direct Materials conversions=

A. Conversion =

In equivalent Units and Cost per equivalent units

Answer 1

A B С D E F 1 1) Equivalent 2 Units 3 Materials 17,000 4 Conversion 14,600 5 62) Cost per Equivalent 7 unit 8 Materials $ 15.41 9 Conversion $ 23.24 10 11 Working Note: 12 Equivalent Units Of Production - Weighted Average 13 Units % Materials EUP-Materials % Conversion Eup-Conversion 14 Units Completed And Transferred Out 12,200 100% 12,200 100% 12,200 15 Units in ending inventory 4,800 100% 4,800 50% 2,400 16 Equivalent Units Of Production 17,000 14,600 17 18 19 20 Cost of beginning work in process 21 Costs incurred during May 22 Total costs 23 Equivalent Units Of Production 24 Cost per equivalent unit Materials Conversion $ 73,690$ 23,494 $ 188,280 $ 315,810 $ 261,970 $ 339,304 17,000 14,600 $ 15.41 $ 23.24

A B с D E F 1 1) 2 3 Materials 4. Conversion 5 6 2) Equivalent Units =+D16 =+F16 Cost per 7 Equivalent unit 8 Materials =+B24 9 Conversion =+C24 10 11 Working Note: 12 Equivalent Units Of Production - Weighted Average 13 Units % Materials EUP-Materials % Conversion Eup-Conversion 14 Units Completed And Transferred Out =7200+5000 1 =+B14*C14 1 =+B14*E14 15 Units in ending inventory 4800 1 =+B15*C15 0.5 =+B15E15 16 Equivalent Units Of Production =+D14+D15 =+F14+F15 17 Materials 73690 188280 19 20 Cost of beginning work in process 21 Costs incurred during May 22 Total costs 23 Equivalent Units Of Production 24 Cost per equivalent unit Conversion 23494 315810 =+C20+C21 =+F16 =+C22/C23 =+B20+B21 =+D16 |=+B22/B23