Reference no: EM132875236

Question - The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day:

Beginning WIP inventory

Direct materials $975

Conversion costs 362

Current period costs

Direct materials 14,600

Conversion costs 7,523

Quantity information is obtained from the manufacturing records and includes the following:

Beginning inventory 750 units (60% complete as to materials, 52% complete as to conversion)

Current period units started 4,600 units

Ending inventory 1,500 units (40% complete as to materials, 20% complete as to conversion)

Required -

(1) Compute the equivalent units for the materials and conversion cost calculations.

(2) Compute the cost per equivalent unit for direct materials and conversion costs.

(3) Compute the cost of goods transferred out and the ending inventory using the weighted-average method.