# Homework 5 Solution - 8-25 Compute Costs per Equivalent...

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8-25 Compute Costs per Equivalent Unit Weighted-Average Method: Matsui Lubricants. Physical Units Equivalent Units Materials Eq. units Conversion Costs Eq. units Flow of units: Units to be accounted for: Beginning WIP inventory .................... 600 Units started this period ...................... 4,000 Total units to account for ................. 4,600 Units accounted for: Completed and transferred out a ......... 3,400 3,400 3,400 Units in ending inventory .................... 1,200 Materials (1,200 x 40%) .................. 480 Conversion costs (1,200 x 20%) ..... 240 Total units accounted for ................. 4,600 3,880 3,640 a 3,400 units transferred out = 4,600 units to account for 1,200 units in ending WIP inventory. Total Direct Materials Conversion Costs Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory .......... \$ 1,248 \$ 976 \$ 272 Current period costs .............................. 18,084 11,440 6,644 Total costs to be accounted for .......... \$19,332 \$12,416 \$6,916 Cost per equivalent unit Materials (\$12,416 ÷ 3,880 units) .......... \$ 3.20 Conversion costs (\$6,916 ÷ 3,640 units) \$ 1.90
8-26 Assign Costs to Goods Transferred Out and Ending Inventory Weighted- Average Method: Matsui Lubricants. Total Direct Materials Conversion Costs Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory .................. \$ 1,248 \$ 976 \$ 272 Current period costs ...................................... 18,084 11,440 6,644 Total costs to be accounted for .................. \$19,332 \$12,416 \$6,916 Cost per equivalent unit Materials (\$12,416 ÷ 3,880 units) .................. \$ 3.20 Conversion costs (\$6,916 ÷ 3,640) ................ \$ 1.90 Costs accounted for: Costs assigned to units transferred out \$17,340 \$10,880 a \$6,460 b Cost of ending WIP inventory ........................ 1,992 1,536 c 456 d Total costs accounted for ........................... \$19,332 \$12,416 \$6,916 Costs transferred out total \$17,340, and costs in ending inventory total \$1,992. a \$10,880 = 3,400 EU x \$3.20 per EU. b \$6,460 = 3,400 EU x \$1.90 per EU. c \$1,536 = 480 EU x \$3.20 per EU.