Lesson $3$ Homework

Complete and submit your work in an Excel file to the dropbox by the Lesson $3$ Deadline. Below is the assignment:

The candy making department at MyChocoCrush Company provides you with the following information for October. All direct materials are placed in process at the beginning of production.

The facts are:

REQUIRED: Use the weighted average process cost method to identify and classify the costs below: HINT: Prepare a Production Cost Report first!

$1.$ Determine the number of units of work in process inventory at the end of the month.

$2.$ Determine the equivalent units of productions for direct materials and conversion costs.

$3.$ Determine direct materials cost per equivalent unit

$4.$ Determine conversion cost per equivalent unit

$5.$ Cost of units completed and transferred out during October

$6.$ Cost of ending work in process Hints for Lesson $3$ Homework Assignment

Hint $1$: You will want to calculate the UNITS to account for in order to determine your ending inventory in UNITS PRIOR to completing the Equivalent Units of Production section as follows:

Beginning inventory UNITS

Plus UNITS Added to production

Equals Units to account for

Less UNITS transferred out

Equals UNITS in ending inventory

Now, per the instructions, it reads that materials are added at the beginning of the period. This means that for materials, the units in ending inventory are $100\backslash \%$ completed!!! For conversion, however, they are partially completed as given in the scenario, $20\backslash \%$ completed for conversion.

Hint $2$: Remember that CONVERSION COSTS $=$ Direct Labor $+$ Overhead!

Hint $3$: The dollar amount given for the Beginning Inventory is for Conversion Costs only!! Here is the logic: Since materials are added at the beginning of the period as the scenario reads, then the materials costs for the beginning inventory had already been accounted for in the prior period!

Hint $4$: Here are some check figures to check your work:

Equivalent units for conversion $\backslash (=304,400\backslash )$

Cost per EU for materials $=\backslash$$$2\mathrm{.}95$