The Matsui Lubricants plant uses the weighted-average method to account for its
ID: 2455300 • Letter: T
Question
The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day:
Beginning WIP inventory
Direct materials $ 2,024
Conversion costs 630
Current period costs
Direct materials 23,240
Conversion costs 12,840
Quantity information is obtained from the manufacturing records and includes the following:
Beginning inventory 640 units (60% complete as to materials, 63% complete as to conversion)
Current period units started 3,900 units
Ending inventory 1,000 units (50% complete as to materials, 20% complete as to conversion)
Required: Compute the cost per equivalent unit for direct materials and conversion costs using the weighted-average method. (Round your answers to 2 decimal places.)
- Cost per Equivalent Unit Materials Conversion CostsExplanation / Answer
Particulars Materials %completion Equivalent mat Conv Units %completion Equivalent Conv Units Opening WIP 640.00 100.00% 640.00 640.00 100.00% 640.00 Units started and completed(3900-1000) 2,900.00 100.00% 2,900.00 2,900.00 100.00% 2,900.00 Closing WIP(7900-6200) 1,000.00 50.00% 500.00 1,000.00 20.00% 200.00 Equivalent units 4,040.00 3,740.00 Opening WIP 2,024.00 630.00 Current Month Costs 23,240.00 12,840.00 Total costs 25,264.00 13,470.00 Cost per Equivalent Unit 6.25 3.60