The Fedex Company produces a car care product known as Shine-9 which is a high-quality vehicle cleaning liquid. The processing of Shine-9 is completed through three separate departments. The following data pertains to the company’s first processing department:

	Quantity Schedule
Unit to be accounted for:
Work in process inventory, May 1 (materials 75% complete; convention 40% complete)	30,000
Started into production during May	140,000
Total units to be accounted for	170,000
		Equivalent Units
		Materials	Conversion
Units accounted for as follows:
Transferred to the next department	150,000	?	?
Work in process inventory, May 31 (materials 50% complete; convention 25% complete)	20,000	?	?
Total units accounted for	170,000	?	?

The information about the cost in work in process beginning inventory and the total cost added during the month of May is given below:

Work in process inventory on May 1:

• Materials: $28,300
• Conversion cost: $7,450

Cost added during May:

• Materials: $192,500
• Conversion cost: $107,250

Required:

1. Determine the missing figures in the above schedule
   (Hint: Compute equivalent units of production for May for the first department)?
2. Compute cost per equivalent unit for May for the first department of Fedex Company?

Answer rating: 100% (QA)

It is assumed that the company follows the weighted average method for the calculation of equivalent units and cost per equivalent unit I Calculation of missing figures in the schedule Units accounted ... View the full answer