The PVC Company manufactures a high-quality plastic pipe that goes through three
ID: 2423092 • Letter: T
Question
The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.
Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)
Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)
Prepare a cost reconciliation report for the month. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)
References
eBook & Resources
The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.
Explanation / Answer
Particulars Materials %completion Equivalent mat Conv Units %completion Equivalent Conv Units Total Opening WIP 73,000.00 100.00% 73,000.00 73,000.00 100.00% 73,000.00 Units started and completed = 380000 - 33000 347,000.00 100.00% 347,000.00 347,000.00 100.00% 347,000.00 Closing WIP 33,000.00 80.00% 26,400.00 33,000.00 20.00% 6,600.00 Equivalent units 446,400.00 426,600.00 Opening WIP Costs 111,600.00 55,800.00 Current Month Costs 580,320.00 306,810.00 Total costs 691,920.00 362,610.00 Per Unit Cost 1.55 0.85 Total units Transferred = 73000 +347000 420,000.00 420,000.00 Total costs of units t/f 651,000.00 357,000.00 1,008,000.00 Closing WIP Units 26,400.00 6,600.00 Cost of closing WIP 40,920.00 5,610.00 46,530.00 Costs to Account for: Opening WIP = 111600+55800 167,400.00 Costs Transferred in = 580320 + 306810 887,130.00 r Total Costs to Account for 1,054,530.00 Costs Accoounted for Costs completed and Transferred Out 1,008,000.00 Ending WIP 46,530.00 Total Costs accounted for 1,054,530.00