uestion 5: Little Boy Blue Inc. uses process costing in costing out their WIP inventory. Here is some information about
their WIP account for the month of June:
WIP Inventory, June 1: 5,000 units (100% DM, 80% Conversion)
WIP Inventory, June 30: 8,000 units (100% DM, 50% Conversion)
Materials Costs for WIP June 1:
$\ 20,450$
Conversion Costs for WIP June 1: $\ 26,160$
Units Started in June:
30,000 units
Units completed and trans. Out:
24,000 units
Materials Costs added:
$\ 99,600$
Conversion Costs added:
$\ 210,060$
Normal Spoilage is 10% of good units and Normal and Abnormal spoilage have 100% of DM and Conversion. There are
3,000 spoiled units. With this information, please find:
a. The cost per equivalent unit for direct materials using the weighted average method:
b. The cost per equivalent unit for conversion costs using the weighted average method:
c. Find the Total Cost of Goods manufactured using the weighted average method:
d. Find the Total Cost of Ending Inventory using the weighted average method:
e. The cost per equivalent unit for direct materials using the FIFO method:
f. The cost per equivalent unit for conversion costs using the FIFO method:
g. Find the Total Cost of Goods manufactured using the weighted FIFO method:
h. Find the Total Cost for Ending Inventory using the FIFO method:
