Revenue and Independent Sales Agents
kComprehensive Problem Weighted-Average Method
The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.
Information on work in the first department, Cooking, is given below for May: Production data: | | Pounds in process, May 1: materials 100% | | complete; conversion 90% complete | 70,000 | Pounds started into production during May | 350,000 | Pounds completed and transferred to the next department | ? | Pounds in process, May 31: materials 75% complete; | | conversion 25% complete | 40,000 | Cost data: | | Work in process inventory, May 1: | | Materials cost | $86,000 | Conversion cost | $36,000 | Cost added during May: | | Materials cost | $447,000 | Conversion cost | $198,000 |
The company uses the weighted-average method.
Required:
1. Compute the equivalent units of production.
2. Compute the costs per equivalent unit for the month.
3. Determine the cost of ending work in process inventory and of the units transferred out to the next department.
4. Prepare a cost reconciliation report for the month.
Comprehensive Problem—Weighted-Average Method
Honeybutter. Inc.. manufactures a product that goes through two departments prior to completion—the Mixing Department followed by the Packaging Department. The follow ing information js available about work in the first department, the Mixing Department, during June.
Required:
Assume that the company uses the weighted-average method.
1. Determine the equivalent units for June for the Mixing Department.
2. Compute the costs per equivalent unit for June for the Mixing Department.
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department.
4. Prepare a cost reconciliation report for the mixing department for June.
CASE STUDY
Cost Structure;Break-Even Point;Target Profits
Marston Corporation manufactures disposable
The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.
Information on work in the first department, Cooking, is given below for May: Production data: | | Pounds in process, May 1: materials 100% | | complete; conversion 90% complete | 70,000 | Pounds started into production during May | 350,000 | Pounds completed and transferred to the next department | ? | Pounds in process, May 31: materials 75% complete; | | conversion 25% complete | 40,000 | Cost data: | | Work in process inventory, May 1: | | Materials cost | $86,000 | Conversion cost | $36,000 | Cost added during May: | | Materials cost | $447,000 | Conversion cost | $198,000 |
The company uses the weighted-average method.
Required:
1. Compute the equivalent units of production.
2. Compute the costs per equivalent unit for the month.
3. Determine the cost of ending work in process inventory and of the units transferred out to the next department.
4. Prepare a cost reconciliation report for the month.
Comprehensive Problem—Weighted-Average Method
Honeybutter. Inc.. manufactures a product that goes through two departments prior to completion—the Mixing Department followed by the Packaging Department. The follow ing information js available about work in the first department, the Mixing Department, during June.
Required:
Assume that the company uses the weighted-average method.
1. Determine the equivalent units for June for the Mixing Department.
2. Compute the costs per equivalent unit for June for the Mixing Department.
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department.
4. Prepare a cost reconciliation report for the mixing department for June.
CASE STUDY
Cost Structure;Break-Even Point;Target Profits
Marston Corporation manufactures disposable