Asked by Shiva Kumar on May 04, 2024
Verified
The inventory at June 1 and costs charged to Work in Process-Department 60 during June are as follows: 
During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units that were 40% completed. Inventories are costed by the weighted average method and all materials are added at the beginning of the process.Determine the following, presenting your computations:
a.Equivalent units of production for conversion cost
b.Conversion cost per equivalent unit and material cost per equivalent unit
c.Total and unit cost of finished goods completed in the current period
d.Total cost of work in process inventory at June 30
Equivalent Units
A concept used in cost accounting to convert partially completed goods into a number of complete units of output, facilitating cost analysis.
Conversion Cost
Conversion Cost refers to the combined expenses of labor and overhead costs required to convert raw materials into finished products.
Weighted Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale during the period.
- Master the calculation of equivalent units of production for both conversion costs and material costs using the weighted average and FIFO methods.
- Learn to compute per-unit costs for both conversion and direct materials.
Verified Answer
ZK
Learning Objectives
- Master the calculation of equivalent units of production for both conversion costs and material costs using the weighted average and FIFO methods.
- Learn to compute per-unit costs for both conversion and direct materials.