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Category > Management Posted 19 Jan 2018 My Price 8.00

Solex Company

EXERCISE 4–11 Equivalent Units and Cost per Equivalent Unit—Weighted-Average Method [LO2, LO3, LO4]

Solex Company produces a high-quality insulation material that passes through two production

processes. Data for June for the first process follow:

 

 

 

 

 

 

 

 

 

 

inventory, June 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$14,900

Units started into production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

280,000

Units transferred to the next process . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

300,000

Materials cost added during June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$385,000

Conversion cost added during June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$214,500

 

Required:

1.       Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for June for the first process.

 

 

2.       Compute the costs per equivalent unit for June for the first process.

3.       Determine the total cost of ending work in process inventory and the total cost of units trans- ferred to the next process in June.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 19 Jan 2018 10:01 PM My Price 8.00

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