Compute the cost per equivalent unit for each product

Assignment Help Finance Basics
Reference no: EM132185280

Question - S.E. Ltd uses process costing and weighted average method of cost valuation for its products. Product X is produced in department Z and transferred to the finished goods warehouse when completed. Given below is cost information for department Z during the month of July 2015:

Work in process (WIP), 1 July 2015 - $15,908

Manufacturing costs added in department Z during July

Direct materials used - $197,815

Conversion costs - $405,087 $602,902

Total manufacturing costs, department Z - $618,810

The cost of WIP in department Z at 1 July included $6,230 of direct material cost. The 3,500 units in WIP at 1 July were 70% complete. A total of 108,000 units were started during July and 100,000 units were completed and transferred out. At the end of July, 6,500 units remained uncompleted. The ending WIP inventory was 40% complete.

In department Z, direct material is added at the beginning of the manufacturing process whilst conversion costs are incurred evenly throughout the manufacturing process. Inspection in department Z takes place when the products are 75% complete. Normal spoilage is set at 6% of good units produced.

Required:

(a) Compute the cost per equivalent unit for each product cost category in department Z for the month of July 2015.

(b) Based on the information obtained in (a) compute the unit cost of product X for the month of July 2015. (Give your answer to the nearest cent). Write a journal entry to record the transfer of the good completed products for the month of July 2015. (Narrations are not required.)

(c) Compute the value of goods in the WIP account at the end of July 2015.

(d) Should abnormal spoilage costs be included as part of product costs? Discuss.

Reference no: EM132185280

Gained meaning in the histories of different countries

5-8 page paper double spaced with at least 5 sources that explores how and why club and national team football has gained meaning in the histories of different countries.

Wally wonders whether there a place for dividends

Wally Wilson is a commercial artist who makes a good living by doing freelance work - mostly layouts and illustrations - for local ad agencies and major institutional client

What is bond interest rate

Assume that the real risk-free rate is r* = 3.15% and the average expected inflation rate is 2.2% for each future year. The bond's DRP is 1%, LP is 0.05%, and the MRP is exp

Determine the present value of the bonds payable

Determine the present value of the bonds payable, using the present value tables in Chapter 10 of your text. Round to the nearest dollar. b. Illustrate the General Journal ent

Develop a probability distribution

In Gallup's Annual Consumption Habits Poll, telephone interviews were conducted for a random sample of 1014 adults aged 18 and over. One of the questions was "How many cups

What happens if you delay start of savings for 5 years

Once you add up all the future values from step 2 above, and do a time line to determine how much you will be able to spend each year assuming you are going to spend all you

Calculate the value of cash and marketable securities

Mandesa, Inc., has current liabilities of $8 million, current ratio of 2 times, inventory turnover of 12 times, average collection period of 30 days, and credit sales of $64

What is swimkidss margin of safety

Swimkids is a swimsuit manufacturer. They sell swim suits at a selling price is $30 per unit. Swimkids variable costs are $18 per unit. Fixed costs are $87,200. Swimkids exp

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd