Miller Enterprise uses weighted-avarage process costing to allocate costs. On Ju
ID: 2489032 • Letter: M
Question
Miller Enterprise uses weighted-avarage process costing to allocate costs. On July 1, information for its WIP - Stage 2 account was: Inventory of 1,100 units, Direct materials costs of $150,000, conversion costs of $200,000. During July, 3,000 units were transferred in and 3,500 units were transferred out. Ending inventory was 90%. complete with respect to direct materials and 60% complete with respect to conversion costs. July direct materials costs were $500,000 and conversion cost were $750,000.
A) what are total equivalent units with respect to direct materials?
B) What are costs per equivalent unit with respect to direct materials?
Explanation / Answer
Beginning WIP
1,100
transferred
3,500
Started
3,000
Ending WIP
600
Units to be accounted
4,100
Units accounted for
4,100
Equivalents
units
Materials
Conversion
Completed
3,500
3,500
3,500
Ending WIP
600
540
360
Total units
4,100
4,040
3,860
Unit cost per unit
Materials
conversion
Beginning cost
150,000
200,000
Added during the year
500,000
750,000
Total cost
650,000
950,000
Units
4,040
3,860
Cost per unit
160.89
246.11
Beginning WIP
1,100
transferred
3,500
Started
3,000
Ending WIP
600
Units to be accounted
4,100
Units accounted for
4,100