EXTRA CREDIT PROBLEM

FRIDAY, SEPTEMBER ${20}^{nd}$

$3$ POINTS

Break Company manufactures one product, XYZ$.$ During the

current period, Break put into production $700,000$ units of XYZ$.$

Additional information:

The beginning work$-$in$-$process inventory of XYZ was

$120,000$ units and ending work$-$in$-$process inventory was

$140,000$ units.

Beginning work$-$in$-$process was period $80\%$ complete for

materials and $25\%$ complete for conversion costs.

Ending work$-$in$-$process was $90\%$ complete as to materials

and $60\%$ complete as to conversion costs.

Materials cost for beginning work$-$in$-$process was

$$2,900,000$ and materials cost added during the period was

$$3,230,000.$

Conversion costs for beginning work$-$in$-$process were

$$1,800,000$ and conversion costs added during the period

were $$6,000,000.$

Using the weighted average method of process costing,

equivalent units of production for materials and for

conversion costs for the period.

Compute cost per equivalent unit for materials and for

conversion costs.

Before answering questions $1$&$2,$ I recommend putting the

information into the chart below:

WIP Units Materials $(\%$ complete$)$ Conversion $(\%$ complete$)$

Beginning WIP

New units started

during current period

Units completed &

transferred out

Ending WIP