Question: Answer as soon as possible. Cooper Co. utilizes process costing in its manufacturing company for a product that passes through two departments. Data relating to
Answer as soon as possible.
Cooper Co. utilizes process costing in its manufacturing company for a product that passes through two departments. Data relating to the product processed in Department 2, during April are presented as follows:
|
| Physical Units | Direct Material Costs | Conversion Costs |
| Work in Process, beginning | 3,000 | $135,240 | $200,000 |
| Started into Processing | 12,000 | $552,000 | $849,400 |
| The units in beginning work in progress were 80% complete with respect to direct materials and 30% complete with respect to conversion costs. | ||||||
| The company had 2,000 units on hand at the end of the period which were 40% complete as to materials and 10% complete as to conversion costs. | ||||||
| Required: | ||||||
| 1. Prepare a quantity schedule and a computation of equivalent units, according to the weighted average cost method. | ||||||
| 2. Compute the costs per equivalent unit, using the weighted average cost method. | ||||||
| 3. Using the data from Requirements (1) and (2), prepare a cost reconciliation, using the weighted average cost method. | ||||||
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