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Question - Pappy's Iced Tea makes iced tea that is sold in grocery stores in New York, NY. The product is created in the brewing department, then is sent off to the bottling department, where it is bottled and the bottles are labeled. The following information pertains to the operations of the Brewing Department for February.
Units
Material
Conversion
Work in Process, Beginning
10,000
80%
25%
Started into Production
200,000
Completed $ Transferred Out
190,000
Work in Process, Ending
20,000
90%
35%
$35,000
$25,000
Costs added during June
$314,440
$246,860
Required: Assume that the company uses the weighted-average method.
1. Determine the equivalent units for February for the Brewing Department.
2. Compute the costs per equivalent unit for the Brewing Department. Round the unit costs to two decimal places.
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Bottling Department.
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