Materials are added at the beginning of the production process at Campo Company.
ID: 2563481 • Letter: M
Question
Materials are added at the beginning of the production process at Campo Company. The following information on the physical flow of units is available for the month of November:
Cost data for November show the following:
Required:
a. Compute the cost equivalent units for the conversion cost calculation assuming Campo uses the weighted-average method.
b. Compute the cost per equivalent unit for materials and conversion costs for November. (Round your answers to 2 decimal places.)
Beginning work in process (50% complete) 60,000 Started in November 570,000 Completed in November and transferred out 520,000 Ending work in process (60% complete) 110,000Explanation / Answer
a Direct materials Conversion Units completed and transferred 520000 520000 Ending inventory 110000 66000 Equivalent units 630000 586000 b Direct materials Conversion Total costs 363250 1312250 Equivalent units 630000 586000 Cost per Equivalent unit 0.58 2.24