Smith's Motor Vehicle repairs uses an automated process to clean and polish its merchandise items. For 30th
Question:
Smith's Motor Vehicle repairs uses an automated process to clean and polish its merchandise items.
For 30th June 2018, the company conducted the following activities:
Units
Beginning work in process inventory 3,000 Items
[Direct material - 100%]
[Conversion costs - 25%]
Units placed in production 12,000 units
Unites Completed 9,000 units
Ending work in process inventory 5,000 units
[Direct material - 100%]
[Conversion costs - 60%]
Costs
Cost of beginning work in process
Direct materials $2,100
Conversion costs $485
Total $2,585
Direct material costs, current $9,000
Conversion costs, current $10,045
Required:
Using the weighted average method, determine the following:
1a. the number of equivalent units
1b. cost per equivalent unit
1c. ending work in process inventory
1d. cost of normal and abnormal spoilage
1e. cost of goods completed and transferred out during March, 2017
Expert Answer:
lets calculate each part using the weighted average method 1a Number of Equivalent Units Equivalent units are calculated separately for direct materia... View the full answer
