Chapter 17 Gannett Watches Solution

Chapter 17 Gannett Watches Solution - Compute equivalent...

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Gannett Watches Consider the following information for the assembly division of Gannett Watches Inc., which operates under the weighted-average method of process costing. Physical Units (watches) Direct Materials Conversion Costs Work in process, beginning inventory (May 1) a 75 $492,000 $94,000 Started during May 515 Completed and transferred out during May 460 Work in process, ending inventory (May 31) b 130 Total costs added during May $3,230,000 $1,400,000 a Degree of completion: Direct materials 90%; Conversion Costs 40% b Degree of completion: Direct materials 65%; Conversion Costs 35%
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Unformatted text preview: Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Where units from? Physical Units Beg WIP, (given) Started during current period (given) Total 75 515 590 Where units go? Physical Units Equivalent Units (all work done to date) Direct Materials Conversion Costs CTO in current period 460 100%; 100% End WIP 130 65%; 35% Total 460 130 590 460 85 545 460 46 506...
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