Homework Help Question & Answers

Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process...

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

16,000

Units to account for

21,000

Units from beginning Work-in-Process, which
were completed and transferred out during May

5,000

Started and completed during May

9,600

Work-in-Process Inventory, May 31

6,400

100

%

50

%

Total units accounted for

21,000

The following cost data are available:

Work-in-Process Inventory, May 1

Direct materials

$

79,350

Conversion

25,728

Costs incurred during May

Direct materials

253,920

Conversion

455,940

Required:

1. Calculate the equivalent units of direct materials and conversion during May. Use the FIFO method.

2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the *FIFO* method.

0 0
Next > < Previous
ReportAnswer #1

1) Equivalent unit

Direct material Conversion Cost
Beginning WIP 5000*0% = 0 5000*50% = 2500
Unit started and completed 9600 9600
Ending WIP 6400 6400*50% = 3200
Equivalent unit 16000 15300

2) Cost per equivalent unit

Direct material = 253920/16000 = 15.87

Conversion = 455940/15300 = 29.80

Know the answer?
Add Answer to:
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process...

    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 18,000 Units to account for 23,000 Units from beginning Work-in-Process, which...

  • Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process...

    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...

  • Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process...

    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 2,000 100 % 50 % Started during May 11,000 Units to account for 13,000 Units from beginning Work-in-Process, which...

  • Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process...

    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: Percentage Completed Tons of Pulp Materials Conversion Work-In-Process Inventory, May 1 4,000 100% 50% Started during May 12,000 Units to account for 16,000 Units from beginning Work-In-Process, which were completed...

  • : Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a...

    : 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 2,000 12,000 14,000 Materials 100% Conversion 50% Work-in-Process Inventory, May 1 Started during May Units to account for Units from beginning Work-in-process, which...

  • Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process...

    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 4,000 100 % 50 % Started during May 15,000 Units to account for 19,000 Units from beginning Work-in-Process, which...

  • URGENT in two hours. Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The...

    URGENT in two hours. 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 4,000 100 % 50 % Started during May 12,000 Units to account for 16,000 Units...

  • URGENT in two hours. Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The...

    URGENT in two hours. 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 4,000 100 % 50 % Started during May 15,000 Units to account for 19,000 Units...

  • 2-02 Saved Help Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company...

    2-02 Saved Help 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 1000 508 Started during May 12,000 Units to account for 17,000 Units from beginning Work-in-process,...

  • Problem 6-37 Weighted Average Method [LO 6-2, 6-4] Weatherly Lumber Company processes wood pulp for manufacturing...

    Problem 6-37 Weighted Average Method [LO 6-2, 6-4] 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 5,000 12,000 17,000 Materials 100% Conversion 50% Work-in-Process Inventory, May 1 Started during May Units to account...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.