Nguyen Enterprises produces premium strawberry jam. Output is measured in litres. Nguyen uses the weighted average method.
Question:
Nguyen Enterprises produces premium strawberry jam. Output is measured in litres. Nguyen uses the weighted average method. During January, the company had the following production data:
Units in process, January 1, 60 percent complete.....................10,000 litres
Units completed and transferred out...................................75,000 litres
Units in process, January 31, 40 percent complete...................20,000 litres
Costs:
Work in process, January 1..................................................$ 44,000
Costs added during January.................................................122,000
Required:
1. Using the weighted average method, calculate the equivalent units for January.
2. Calculate the unit cost for January.
3. Assign costs to units transferred out and EWIP.
Step by Step Answer:
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman