The Cactus Seed Lotion company has two departments: Blending and Filling. During
ID: 2421501 • Letter: T
Question
The Cactus Seed Lotion company has two departments: Blending and Filling. During the period, Filling received 7,000 ounces from Blending; completed 8,000 ounces, including 1,500 ounces of WIP at the beginning of the period (40% complete); and had 800 ounces in WIP at the end of the period (70% complete). The cost of DM transferred into Filling is $12,000. The conversion cost for the period in Filling is $6,000.
How many ounces were started and completed during the period?
What are the EUP’s for DM and Conversion?
Explanation / Answer
How many ounces were started and completed during the period?
Started and completed during the period = Total Ounces Completed - WIP at the beginning which is completed
Started and completed during the period = 8000-1500
Started and completed during the period = 6500 Ounces
What are the EUP’s for DM and Conversion?
As per FIFO
EUP’s for DM = WIP at the beginning*% completed during the period + Started and completed during the period*100% + WIP at the end*% completed during the period
EUP’s for DM = 1500*0% + 6500*100% + 800*100%
EUP’s for DM = 7300
EUP’s for Conversion = WIP at the beginning*% completed during the period + Started and completed during the period*100% + WIP at the end*% completed during the period
EUP’s for Conversion = 1500*(100%-40%) + 6500*100% + 800*70%
EUP’s for Conversion = 7960
Note :
As per Weighted Average Method
EUP’s for DM =Unit completed*100% + WIP at the end*% completed during the period
EUP’s for DM = 8000*100% + 800*100%
EUP’s for DM = 8800
EUP’s for Conversion = Unit completed*100% + WIP at the end*% completed during the period
EUP’s for Conversion = 8000*100% + 800*70%
EUP’s for Conversion = 8560