The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day.           Beginning WIP inventory       Direct materials $ 986   Conversion costs   317   Current period costs       Direct materials   12,390   Conversion costs   6,083       Quantity information is obtained from the manufacturing records and includes the following.           Beginning inventory 600 units (60% complete as to materials, 53% complete as to conversion) Current period units started 4,300 units   Ending inventory 1,200 units (40% complete as to materials, 25% complete as to conversion)     Required: a. Compute the equivalent units for the materials and conversion cost calculations. b. Compute the cost per equivalent unit for direct materials and conversion costs.

Question

 

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day.

 

       
Beginning WIP inventory      
Direct materials $ 986  
Conversion costs   317  
Current period costs      
Direct materials   12,390  
Conversion costs   6,083  
 

 

Quantity information is obtained from the manufacturing records and includes the following.

 

       
Beginning inventory 600 units (60% complete as to materials,
53% complete as to conversion)
Current period units started 4,300 units  
Ending inventory 1,200 units (40% complete as to materials,
25% complete as to conversion)
 

 

Required:

a. Compute the equivalent units for the materials and conversion cost calculations.

b. Compute the cost per equivalent unit for direct materials and conversion costs.

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