Mighty Mouse Toy Factory uses the weighted average method of process costing.The following information was available for the current year:
$\begin{array}{lcc}
& \text {Number } & \text {Production } \
&\underline{ \text {of units } } &\underline{\text { costs }}\
\text { Beginning work-in-process ( $ 10 \% $ complete) } &20000&\$200000\
\text { Units started this period (current period production work) } &200000&800000\
\text { Ending work-in-process ( $50 \% $ complete) } &50000\
\end{array}$

Direct material costs are added at the beginning of the process,while conversion costs (direct labour and overhead)are added uniformly throughout the process.Conversion costs are 75% of all beginning costs and current period costs;the rest are direct material costs.
Required:
A.What is the direct material cost per equivalent unit?
B.What is the conversion cost per equivalent unit?

Question

Mighty Mouse Toy Factory uses the weighted average method of process costing.The following information was available for the current year:
$\begin{array}{lcc}
& \text {Number } & \text {Production   } \
&\underline{ \text {of units  } } &\underline{\text { costs }}\
  \text { Beginning work-in-process ( $ 10 \% $ complete) } &20000&\$200000\
 \text { Units started this period (current period production work) } &200000&800000\
 \text {  Ending work-in-process ( $50 \% $ complete) } &50000\
\end{array}$

Direct material costs are added at the beginning of the process,while conversion costs (direct labour and overhead)are added uniformly throughout the process.Conversion costs are 75% of all beginning costs and current period costs;the rest are direct material costs.
Required:
A.What is the direct material cost per equivalent unit?
B.What is the conversion cost per equivalent unit?

Quizplus · Accepted Answer

The Answer of Mighty Mouse Toy Factory uses the weighted average method of process costing.The following information was available for the current year:
$\begin{array}{lcc}
& \text {Number } & \text {Production   } \
&\underline{ \text {of units  } } &\underline{\text { costs }}\
  \text { Beginning work-in-process ( $ 10 \% $ complete) } &20000&\$200000\
 \text { Units started this period (current period production work) } &200000&800000\
 \text {  Ending work-in-process ( $50 \% $ complete) } &50000\
\end{array}$

Direct material costs are added at the beginning of the process,while conversion costs (direct labour and overhead)are added uniformly throughout the process.Conversion costs are 75% of all beginning costs and current period costs;the rest are direct material costs.
Required:
A.What is the direct material cost per equivalent unit?
B.What is the conversion cost per equivalent unit?

Mighty Mouse Toy Factory Uses the Weighted Average Method of Process