Materials are added at the beginning of the production process at Campo Company.
ID: 2583968 • 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 (56% complete) 57,000 Started in November 560,000 Completed in November and transferred out 535,000 Ending work in process (55% complete) 82,000Explanation / Answer
ans)
1. Computation of cost equivalent units for the conversion cost using weighted average method
Materials Conversion
Completed in november and transferred out 535000 535000
Ending work in progress
Materials (82000 X 100%) 82000
Conversion( 82000 X 55%) 45100
Equivalent units of production 617000 580100
2) Computation of cost per equivalent unit of materials and conversion costs
Materials Conversion costs
Cost of beginning work in progress 31300 43700
Cost added during the period 280950 1079550
Total cost (a) 312250 1123250
Equivalent units of production (b) 617000 580100
Cost per equivalent unit (c) = (a) / (b) $0.5 $1.94