1. Richardson Company computed the flow of physical units completed for Department M for the month of...
Question:
1. Richardson Company computed the flow of physical units completed for Department M for the month of March 2011 as follows:
Units completed:
From work in process on March 1, 2011, 15, 000
From March production 45, 000
60, 000
Materials are added at the beginning of the process. The 12, 000 units of work in process at March 31, 2011, were 80% complete as to conversion costs. The work in process at March 1, 2011, was 60% complete as to conversion costs.
- Using the FIFO method, the equivalent units for March conversion costs were:
2. Pure Spring Water Company bottles spring water. The spring water first undergoes filtration in Department 1 and is eventually bottled in Department 2. A quantity schedule for May 2011 follows:
DEPARTMENT 1 DEPARTMENT 2
Units started in process 110,000 Units received from department 1 80,000
Units transferred to Department 2 80,000 Units transferred to finished stock 61,400
Units in process, end 30,000 Units in process, end 18,600
Units in process at the end in both departments are 72%.
- In Department 2, what is the equivalent production for conversion costs?
3. The following data for the month of September were taken form the cost records of Department 1 of Pro-Life products which uses process costing system:
Opening inventory of work in process:
Units – 500 (with all materials added and 50% of labor and overhead)
Cost – Materials 2, 400
Labor 1, 500
Factory overhead 760
Put into production:
Units – 5, 000
Costs - Materials 25, 100
Labor 19, 380
Factory overhead 14, 900
Completed and transferred – 4, 800 units
Ending inventory of work in process:
Units – 700 (with all materials, and 60% of labor and overhead)
- The cost per equivalent unit (rounded to nearest centavo) under FIFO:
- The cost per equivalent unit (rounded to nearest centavo) under weighted average: