Brenda enterprise had the following information for FY 2018: Work in process -1/

ID: 2403194 • Letter: B

Question

Brenda enterprise had the following information for FY 2018:

Work in process -1/1/18 100,000 units

Units started into production 575,000 units

Work in process -12/31/18 75,000 units

Direct material put into production $575,000

Conversions costs put into production $843,750

The beginning work in process was 100% complete as to direct materials and 75% complete as to conversion costs

The beginning work in process consisted of:

Direct material $943,750

Conversion cost $303,750

Brenda Enterprise uses the weighted-average method.

1. the equivalent units of production for direct materials

2. the cost per equivalent unit for materials

3. the equivalent units of production for conversion

4. the cost per equivalent unit for conversion

5. the cost that should be assigned to Brenda enterprise work in process at the end

Explanation / Answer

Solution-1) Equivalent units of production for direct materials: 675,000

Solution-2) Cost per equivalent unit for materials: $2.25

Solution-3) Equivalent units of production for conversion: 637,500

Solution-4) Cost per equivalent unit for conversion: $1.80

Solution-5) Cost that should be assigned to Brenda enterprise work in process at the end: $236,250

Working:

Schedule-Equivalent Units

Particulars

Material

Conversion

Beginning WIP @ 100,000 (75% complete for CC)

100,000

Started and Complete during the month (500,000 units)

500,000

Ending WIP @ 75,000 (50% complete for CC)

75,000

37,500

???? Totals

675,000

637,500

Schedule - Unit Cost Computation

Item:

Total Costs

Equivalent Units

Per Unit Cost

Material Costs

$1,518,750

675,000 u

$2.25

Conversion Costs

$1,147,500

637,500 u

$1.80

???? Totals amount

$2,666,250

$4.05

Material Costs: ?BWIP = $943,750; Month =?575,000; Total?=?$1,518,750

Conversion Costs: ?BWIP =?$303,750; Month =?$843,750; Total?=?$1,147,500

Schedule - Cost Allocation

Completed and Transferred Out:

??????? 600,000 units X $4.05 per unit

$2,430,000

Ending WIP,

?????? Material Cost (75,000 units X $2.25 per unit )

$168,750

?????? Conversion Costs (75,000 units X 50% complete X $1.80 per unit)

$67,500

?? Total Ending WIP

$236250

Total Costs to Account for: