-use weighted-average method on both problems

China Pacific

China Pacific manufactures a variety of natural fabrics for the clothing industry in a neighborhood of Shanghai. The following data pertain to the month of October 20X5.

WIP inventory, October 1 25,000 units

DM: 60% complete $57,000

Conversion: 30% complete $45,000

Costs incurred during October

DM: $736,000

Conversion: $1,094,950

During October 175,000 units were completed and transferred out. At the end of the month, 30,000 units (direct materials 80% complete and conversion 40% complete) remain in WIP inventory.

1. Calculate EU, cost per EU, cost of units transferred out, and cost of WIP ending inventory

Yamamoto

Yamamoto Company manufactures a single product that goes through two processes, mixing and cooking. This data pertains to the mixing department for August 2012:

WIP inventory, August 1 (conversion: 80% complete) 27,000 units

WIP inventory, August 31(conversion 40% complete) 17,000 units

Units started into production 60,000

Units completed and transferred out ?

COSTS

WIP inventory, August 1:

Material X $64,800

Material Y $89,100

Conversion $119,880

Costs added during August:

Material X $152,700

Material Y $138,400

Conversion $302,520

Material X is added at the beginning of work in the mixing department. Material Y is also added in the mixing department, but not until units are 60% complete with regard to conversion. Conversion costs are incurred uniformly during the process.

!. Calculate EU, costs per EU, costs of units transferred out, and cost of WIP ending inventory