How do you compute both direct material cost and the conversion cost per equvalent unit
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Compute equivalent units of production for both direct materials and conversion
Breanna O.
Compute the conversion cost per equivalent unit for the Production department using the weighted-average method. Direct Materials Percent Beginning work in process inventory 18,000 100% 40% Units started and completed 90,000 Units completed and transferred out 108,000 Ending work in process inventory 30,000 100% 60% Production cost information for the Production department follows. Beginning work in process Direct materials $ 93,500 Conversion 107,000 $ 200,500 Costs added this period Direct materials $ 253,000 Conversion 291,160 $ 544,160
Aarya B.
Woodcraft Ltd manufactures wooden tables and chairs using an assembly line process. All direct materials are introduced at the start of the process, and conversion cost is incurred evenly throughout manufacturing. An examination of the company's work-in-process inventory account for March revealed the following selected information: • Balance -1 March: 200 units, 25% complete as to conversion, cost $18,000 • Production started: 800 units • Direct material used during March: $43,000 • Conversion cost for March: $30,000 • Production completed: 600 units Additional information: • The opening work-in-process cost consists of direct material cost of $12,000 and conversion cost of $6,000. • The ending work-in-process was 75% complete with respect to conversion costs. • The organisation applies the weighted average process costing method. Required: Show all your workings. i. Calculate the cost per equivalent unit for both direct material and conversion during march
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