The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the

Fantastic news! We've Found the answer you've been seeking!

Question:

The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During May, $200,000 of materials costs and $95,000 in conversion costs were charged to the department. The beginning Work in Process inventory was $63,000 on May 1, comprised of $40,000 of materials costs and $23,000 of conversion costs. The company employs the weighted-average method of process costing. Other data for the month of May are as follows:

Beginning Work in Process inventory, 5/1 25,000 units (40% complete)

Units completed and transferred out 50,000 units

Ending Work in Process inventory, 5/31 30,000 units (30% complete)

Fill in the blanks below based on the information above:

A. How many physical units have to be accounted for in May?

B. What are the equivalent units of production for materials for the month of May?

C. What are the equivalent units of production for conversion costs for the month of May?

D. What is the total cost assigned to one equivalent unit of production during the in May?

E. Using the rounded result obtained in ‘D’ above, what is the total cost assigned to the 50,000 units that were transferred out of the Assembly Department in May?

F. What is the total cost of the May 31 inventory?