NEED ANSWER FOR QUESTION $11\mathrm{.}11$ ONLY

$11\mathrm{.}10-$ Olivia$$s is a brand of lotion created specifically for sensitive skin. The company, which goes by the same name, manufactures in small batches so the lotion retains its special qualities. The batch in process on December $31$ included $150$ units, determined to be $60\%$ complete as to conversion costs. DM costs had already been added, as all DM is added at the very beginning of processing. During January, Olivia$$s started another $2,000$ units, and by January $31,2,050$ units were completed, leaving $100$ units still in process. Units in ending WIP Inventory were $50\%$ complete for conversion costs. The following costs existed or were added to the WIP Inventory account in January.

Total Costs

Costs in beginning WIP Inventory $($from last period$)$ $$758$

Costs added to WIP Inventory this period $$4,012$

Total costs to account for $$4,770$

$$

DM

Costs in beginning WIP Inventory $($from last period$)$ $$335$

Costs added to WIP Inventory this period $$1,600$

Total costs to account for $$1,935$

Conversion Costs$$

Costs in beginning WIP Inventory $($from last period$)$ $$423$

Costs added to WIP Inventory this period $$2,412$

Total costs to account for $$2,835$

Refer to the information presented in E$11\mathrm{.}10$ for Olivia$$s$,$ except now assume Olivia$$s uses the weighted$-$average method of process costing.

Required

a$.$ Complete Steps $1$ and $2$ of the template to determine the equivalent units of work done during January.

b$.$ Complete Steps $35$ of the template to determine the cost per equivalent unit and to assign DM costs and conversion costs to the physical units of the period. Carefully label the total cost of units completed.

c$.$ What was Olivia$$s total cost of completing one unit of lotion this month? Show your calculation and explain what costs it includes. If the company estimates that it will incur an additional $$0\mathrm{.}75$ per unit to package the units into $3$ oz$.$ travel$-$sized tubes, do the costs seem appropriate for a specialized lotion such as this, given that there are many nonspecialized substitute products in the lotion market? Explain.

E$11\mathrm{.}10($ LO$2\_,3\_,4\_,5\_),$ AP Olivia's is a brand of lotion created specifically for sensitive skin. The company, which goes by the same name, manufactures in small batches so the lotion retains its special

qualities. The batch in process on December $31$ included $150$ units, determined to be $60\%$ complete as to conversion costs. DM costs had already been added, as all DM is added at the very

beginning of processing. During January, Olivia's started another $2,000$ units, and by January $31,2,050$ units were completed, leaving $100$ units still in process. Units in ending WIP Inventory were

$50\%$ complete for conversion costs. The following costs existed or were added to the WIP Inventory account in January.

Required

a$.$ Assuming Olivia's uses the FIFO method of process costing, complete Steps $1$ and $2$ of the template to determine the equivalent units of work done during January.

b$.$ Complete Steps $3-5$ of the template to determine the cost per equivalent unit and to assign DM costs and conversion costs to the physical units of the period. Carefully label the total cost of units

completed.

c$.$ What was Olivia's total cost of completing one unit of lotion this month? Show your calculation and explain what costs it includes. If the company estimates that it will incur an additional $$0\mathrm{.}75$

per unit to package the units into $3$ oz$.$ travel$-$sized tubes, do the costs seem appropriate for a specialized lotion such as this, given that there are many nonspecialized substitute products in the

lotion market? Explain.

Assign costs to units completed and ending WIP Inventory units using weighted$-$average $[$related to E$11\mathrm{.}10].$

E$11\mathrm{.}11($LO $2,3\_,4,5\_),$ AP Refer to the information presented in E$11\mathrm{.}10$ for Olivia's, except now assume Olivia's uses the weighted$-$average method of process costing.

Required

a$.$ Complete Steps $1$ and $2$ of the template to determine the equivalent units of work done during January.

b$.$ Complete Steps $3-5$ of the template to determine the cost per equivalent unit and to assign DM costs and conversion costs to the physical units of the period. Carefully label the total cost of units

completed.

c$.$ What was Olivia's total cost of completing one unit of lotion this month? Show your calculation and explain what costs it includes. If the company estimates that it will incur an additional $$0\mathrm{.}75$

per unit to package the units into $3$ oz$.$ travel$-$sized tubes, do the costs seem appropriate for a specialized lotion such as this, given that there are many nonspecialized substitute products in the

lotion market? Explain.