Determine the cost of ending work in process inventory

Reference no: EM131265193

Assignment

The WireOne Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating. Materials are introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into the Coating Department, where specialty plastic coating is applied.

Selected data relating to the Weaving Department during May are given below:

Production data:
Kilograms in process, May 1(materials 100% complete; conversion 80% complete)	109,000
Kilograms started into production during May	461,000
Kilograms completed and transferred to Coating	?
Kilograms in process, May 31(materials 65% complete; conversion 30% complete)	72,000
Cost data:
Work in process inventory, May 1:
Materials cost	106,820
Conversion cost	98,100
Cost added during May:
Materials cost	868,372
Conversion cost	390,324

The company uses the weighted-average method.

Required:

1. Compute the equivalent units of production.

Material =
Conversion =

Equivalent units of production

2. Compute the costs per equivalent unit for May

	Material	Conversion
Cost per equivalent units

3. Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.)

	Material	Conversion	Total
Cost of ending work in process inventory
Cost of units completed and transferred out

4. Prepare a cost reconciliation between the costs determined in (3) above and the cost of beginning inventory and costs added during the period. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.)

Cost Reconciliation
Cost to be accounted for:
Cost of beginning work in process inventory: ___________________
Costs added to production during the period: ____________________
Total Costs: ____________________
Costs accounted as follows:
Transferred to the coating department: ____________________
Work in Process May 31
Materials: ____________________
Conversion: ____________________
Total Costs: ____________________

Reference no: EM131265193

Questions Cloud

Unique contributions are associated with project globe : How did project GLOBE build on and extend Hofstede's analysis? What unique contributions are associated with project GLOBE?

What is frontloading and why is it useful : What is "frontloading," and why is it useful in routine business letters? Why is it best to write most business letters "backward"?

Benefits to the organisation of improved record keeping : Question: The potential (tangible and intangible) benefits to the organisation of improved recordkeeping. Give some example.

Calculate the compliance matrix in laminate coordinates : Calculate the compliance matrix [S] in laminate coordinates at x = aw/4, y = af /2, for the fill and warp tows of sample type 5 in Table 9.1 using the information given in the tables in this chapter.

Determine the cost of ending work in process inventory : Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.)

What percentage of payment goes toward interest for payment : Katie Couric's company borrowed $100,000 from the bank at 8% interest compounded quarterly in order to put in a pool for the senior management team and boost morale. If the bank wants to be paid back in monthly payments over 6 years... How much is ea..

What are a writers three goals in writing adjustment letter : What is a claim? When is it straightforward? In complying with requests, why is it especially important that all facts are correct on letters written on company stationery? What is an adjustment letter?

Determine three ways that employee layoffs can affect : Determine three ways that employee layoffs can affect other employees in the organization. Examine two additional ways that employee layoffs can affect the organization as a whole.

Problem regarding the employee selection : Compare and contrast the structured interview, situational interview, and behavioral interview. Determine which type of interview would be more beneficial when interviewing applicants. Support your selection.

User Account

All Pages