MALDIVES Company uses the weighted-average method in its process costing system. The company adds materials at the
Question:
MALDIVES Company uses the weighted-average method in its process costing system. The
company adds materials at the beginning of the process in Department M. Conversion costs
were 75% complete with respect to the 4,000 units in work in process at May 1 and 50%
complete with respect to the 6,000 units in work in process at May 31. During May, 12,000 units
were completed and transferred to the next department. An analysis of the costs relating to work
in process at May 1 and to production activity for May follows:
Materials Conversion
Work in process 5/1 13,800 3,740
Costs added during May 42,000 26,260
Required:
1. Compute for the EUP of Materials and Conversion Costs
2. Compute for the cost per unit of Materials and Conversion Costs
3. Compute for the TOTAL COST TRANSFERRED
4. Compute for the COST OF WORK IN PROCESS ENDING