Company produces wood pulp for the manufacture of various paper products. The company uses a step-by-step...

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Company produces wood pulp for the manufacture of various paper products. The company uses a step-by-step costing system where all direct materials are input at the start of production and switching costs are incurred during the manufacturing process. The following is a table of the company's production numbers in April : Beginning WIP Inventory (April 1) Production quantity in this period total input Work in progress at the beginning of the period and completed and transferred out in April Started and completed in April Ending WIP Inventory (April 30) total output The company still has the following information: Work in Process Inventory, April 1: direct material switching cost Cost incurred in April : direct material switching cost Tons of pulp 1,600 100,000 101,600 1,600 91,400 8,600 101,600 $20,750 $47,000 $233,250 $296,560 percent complete direct switching material 100% 100% cost 70% 60% Require: 1. the equivalent unit, equivalent unit cost and total cost to be allocated of direct material and conversion costs in April by the weighted average method, and allocate this cost to the units completed and transferred out, and the units of ending work in process inventory. (14 points) 2. the equivalent unit, equivalent unit cost and total cost to be allocated of direct material and conversion costs in April on a first-in-first- out basis, and allocate this cost to the units that have been completed and transferred out, and the units that are in work-in-progress at the end of the period. (18 points) 3. List the characteristics of three companies that are suitable for step costing. (3 points) Company produces wood pulp for the manufacture of various paper products. The company uses a step-by-step costing system where all direct materials are input at the start of production and switching costs are incurred during the manufacturing process. The following is a table of the company's production numbers in April : Beginning WIP Inventory (April 1) Production quantity in this period total input Work in progress at the beginning of the period and completed and transferred out in April Started and completed in April Ending WIP Inventory (April 30) total output The company still has the following information: Work in Process Inventory, April 1: direct material switching cost Cost incurred in April : direct material switching cost Tons of pulp 1,600 100,000 101,600 1,600 91,400 8,600 101,600 $20,750 $47,000 $233,250 $296,560 percent complete direct switching material 100% 100% cost 70% 60% Require: 1. the equivalent unit, equivalent unit cost and total cost to be allocated of direct material and conversion costs in April by the weighted average method, and allocate this cost to the units completed and transferred out, and the units of ending work in process inventory. (14 points) 2. the equivalent unit, equivalent unit cost and total cost to be allocated of direct material and conversion costs in April on a first-in-first- out basis, and allocate this cost to the units that have been completed and transferred out, and the units that are in work-in-progress at the end of the period. (18 points) 3. List the characteristics of three companies that are suitable for step costing. (3 points)

Answer rating: 100% (QA)

Here are the steps and calculations required to solve this production costing problem 1 Weighted Average Method Direct Materials Beginning WIP 1600 to... View the full answer