Question
The Avionics Co assembles parts for the air transport industry. The following data relates to its radar based tracking devices, to which it assigns costs
The Avionics Co assembles parts for the air transport industry. The following data relates to its radar based tracking devices, to which it assigns costs using the weighted average method of process costing.
Additional information:
Note 1: degree of completion: direct materials 90%, conversion costs 40%
Note 2: degree of completion direct materials 60%; conversion costs 30%
Required
a. Compute equivalent units for direct materials and conversion costs.
b. Calculate cost per equivalent unit for direct materials and conversion costs, summarizing for total costs to account for. Assign these costs to units completed and transferred out and to units in ending work in process. 15+101
Physical units (tracking devices) 8. Direct Conversion Materials costs Beginning WIP May 1 (see note 1) Started in May | Completed during May $4,933,600 $910,400 50 46 Ending WIP May 31 (see note 2) Costs added during May 12 $32,200,000 $13,920,000
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