Question: S-T Inc. processes material in 1,000-litre batches. Each batch results in 400 L of main product X, 500 L of main product Y, and 100
S-T Inc. processes material in 1,000-litre batches. Each batch results in 400 L of main product X, 500 L of main product Y, and 100 L of by-product Z. Material is added at the start of the process. The joint products emerge at the end of the process. By-product revenues are treated as a reduction of joint costs at the time of production. Joint costs are assigned to main products using the net realizable value method. Product X sells for $8/L and has separable costs of $2/L. Product Y sells for $11/L and has separable costs of $3/L. By-product Z sells for $1/L.
The beginning inventory consists of two batches averaging 30% and 80% complete. Material costs are $8,550, and conversion costs are $3,007. The ending inventory consists of one batch, which is 50% complete. During the week, 20 batches were completed and transferred out. Materials placed into production had a cost of $71,250, and conversion costs totalled $40,470.
REQUIRED:
Using the weighted-average process costing method, what is the unit cost to be assigned to each of the completed products X, Y, and Z?
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Physical Flow WIP beginning2 batches 30 and 80 converted Started21 batches Completed and transferred out20 batches Ending WIP1 batch 50 converted Equi... View full answer
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