Question: How do you figure out the conversion costs column in requirement 2? I have marked the blanks I need help with a ? Ceramic Painting
How do you figure out the conversion costs column in requirement 2? I have marked the blanks I need help with a ?
Ceramic Painting prepares and packages paint products. Ceramic Painting has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. The company uses the weighted-average method. Data from the month of May for the Blending Department are as follows:
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| Gallons |
|
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| Beginning Work-in-Process Inventory | 0 | gallons | |
| Started in production | 9,000 | gallons | |
| Completed and transferred out to Packaging in May | 4,000 | gallons | |
| Ending Work-in-Process Inventory (30% of the way through | 5,000 | gallons | |
| the blending process) |
| ||
| Costs | |||
| Beginning Work-in-Process Inventory | $0 | ||
| Costs added during May: | |||
| Direct materials | 6,750 | ||
| Direct labor | 1,300 | ||
| Manufacturing overhead allocated | 2,000 | ||
|
| Total costs added during May | $10,050 |
|
Requirement 1. Compute the Blending Department's equivalent units of production for direct materials and for conversion costs. (Complete all answer boxes. Enter a "0" for any zero balances.)
| Ceramic Painting | ||||
| Production Cost Report - Blending Department (Partial) | ||||
| Month Ended May 31 | ||||
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|
| Equivalent Units | ||
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| Physical | Direct | Conversion | |
| UNITS | Units | Materials | Costs | |
| Units to account for: |
|
|
| |
| Beginning work-in-process | 0 |
|
| |
| Started in production | 9,000 |
|
| |
| Total units to account for | 9,000 |
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| |
|
|
|
|
| |
| Units accounted for: |
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|
| |
| Completed and transferred out | 4,000 | 4,000 | 4,000 | |
| Ending work-in-process | 5,000 | 5,000 | 1,500 | |
| Total units accounted for | 9,000 | 9,000 | 5,500 | |
Requirement 2. Compute the total costs of the units (gallons) (a) completed and transferred out to the Packaging Department, and (b) in the Blending Department ending Work-in-Process Inventory.
| Ceramic Painting | ||||
| Production Cost Report - Blending Department (Partial) | ||||
| Month Ended May 31 | ||||
|
| Direct | Conversion | Total | |
| COSTS | Materials | Costs | Costs | |
| Costs to account for: |
|
|
| |
| Beginning work-in-process | $0 | $0 | $0 | |
| Costs added during the period | 6,750 | ? | 10,050 | |
| Total costs to account for | $6,750 | ? | $10,050 | |
| Divided by: Total EUP | 9,000 | 5,500 |
| |
| Cost per equivalent unit | $0.75 | ? |
| |
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