Chap004 (dragged) 24 - $257,400 4. (a) No material would be...

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McGraw-Hill/Irwin ¤ 2005 The McGraw-Hill Companies, Inc. Managerial Accounting, 6/e 4-25 PROBLEM 4-32 (CONTINUED) D i r e c t Material Conversion Total Work in process, April 1…………………… $ 230,000 $ 63,940 $ 293,940 Costs incurred during April………………. 1,390,000 5 7 5 , 4 6 0 1 , 9 6 5 , 4 6 0 Total costs to account for…………………. $1,620,000 $ 6 3 9 , 4 0 0 $ 2 , 2 5 9 , 4 0 0 Equivalent units……………………………. .. 30,000 27,800 Cost per equivalent unit…………………… $54 a $23 b $77 c a $1,620,000 ÷ 30,000 = $54 b $639,400 ÷ 27,800 = $23 c $54 + $23 = $77 3. The cost of the ending work-in-process inventory is $257,400: Direct material (4,000 x $54)……. . $216,000 Conversion cost (1,800 x $23)…. . 41,400 Total…………………………….
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Unformatted text preview: $257,400 4. (a) No material would be added during May. All material is introduced at the start of the manufacturing process, and these units were begun in April. ( b ) S i n c e t h e w o r k-i n-p r o c e s s i n v e n t o r y i s 4 5 % c o m p l e t e a t t h e e n d o f A p r i l , 5 5 % of the conversion would be done in May. 5. Given that the ending work-in-process inventory is at the 45% stage of completion, these units would not have reached the 75% point in April where TH55 is added. Therefore, there would be zero equivalent units with respect to part TH55 in the ending work-in-process inventory....
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