Universal Manufacturing uses a weighted-average process-costingsystem. All materials are introduced at the start of manufacturing,and conversion costs are incurred evenly throughout the process.The company's beginning and ending work-in-process inventoriestotaled 10,000 units and 15,000 units, respectively, with thelatter units being 2/3 complete at the end of the period. Universalstarted 30,000 units into production and completed 25,000 units.Manufacturing costs follow.
Beginning work in process: Materials, $60,000; conversion cost,$150,000
Current costs: Materials, $180,000; conversion cost,$480,000
Universal's equivalent-unit cost for conversion cost is:
$13.71.
$18.00.
$21.00.
$25.20.
some other amount.
Universal Manufacturing uses a weighted-average process-costingsystem. All materials are introduced at the start of manufacturing,and conversion costs are incurred evenly throughout the process.The company's beginning and ending work-in-process inventoriestotaled 10,000 units and 15,000 units, respectively, with thelatter units being 2/3 complete at the end of the period. Universalstarted 30,000 units into production and completed 25,000 units.Manufacturing costs follow.
Beginning work in process: Materials, $60,000; conversion cost,$150,000
Current costs: Materials, $180,000; conversion cost,$480,000
Universal's equivalent-unit cost for conversion cost is:
$13.71.
$18.00.
$21.00.
$25.20.
some other amount.
Related questions
Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows.
Work in Process, May 1 (58,500 units, 100% complete for direct materials, 40% complete with respect to conversion costs; includes $87,500 of direct material cost; $51,050 of conversion costs).
| Units started in May | 242,000 |
| Units completed in May | 217,000 |
Work in Process, May 31 (83,500 units, 100% complete for direct materials; 25% complete for conversion costs).
| Costs incurred in May | ||
| Direct materials | $ | 450,120 |
| Conversion costs | $ | 471,845 |
If Pitt Enterprises uses the FIFO method of process costing, compute the cost per equivalent unit for direct materials and conversion costs respectively for May.
Fast Co. produces its product through a single processingdepartment. Direct materials are added at the start of production,and conversion costs are added evenly throughout the process. Thecompany uses monthly reporting periods for its weighted-averageprocess costing system. The Work in Process Inventory account has abalance of $98,300 as of October 1, which consists of $21,300 ofdirect materials and $77,000 of conversion costs.
During the month the company incurred the followingcosts:
| Directmaterials | $ | 160,150 |
| Conversion | 813,880 | |
During October, the company started 154,000 units and transferred164,000 units to finished goods. At the end of the month, the workin process inventory consisted of 27,000 units that were 80%complete with respect to conversion costs.
Required:
1. Prepare the companyâs process cost summary forOctober using the weighted-average method.
2. Prepare the journal entry dated October 31 totransfer the cost of the completed units to finished goodsinventory.
Prepare the companyâs process cost summary for October using theweighted-average method. (Round "Cost per EUP" to 2 decimalplaces.)
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Record the transfer of goods to finished goods inventory.
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