Cuevas Company manufactures a single product that goes through two processes, mixing and cooking. These data pertain
Question:
Cuevas Company manufactures a single product that goes through two processes, mixing and cooking. These data pertain to the mixing department for August:
Work-in-process inventory, August 1
Conversion: 80 percent complete ......... 33,000 units
Work-in-process inventory, August 31
Conversion: 40 percent complete ......... 27,000 units
Units started into production ............ 54,000
Units completed and transferred out ......... ?
Material X ..................$ 64,800
Material Y .................. 89,100
Conversion .................. 119,880
Costs added during August
Material X .................. 152,700
Material Y .................. 135,900
Conversion .................. 304,920
Material X is added at the beginning of work in the mixing department. Material Y is also added in the mixing department, but not until product units are 60 percent complete with regard to conversion. Conversion costs are incurred uniformly during the process. The company uses the weighted-average cost method.
Required
1. Calculate equivalent units of material X, material Y, and conversion for the mixing department.
2. Calculate costs per equivalent unit for material X, material Y, and conversion.
3. Calculate the cost of units transferred out.
4. Calculate the cost of ending work-in-process inventory.
Step by Step Answer:
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins