Weighted-Average Method Arsenio Company manufactures a single product that goes throughtwo processes, mixing and cooking. The following data pertain to the mixing department for August:[LO 6-2, 6-5][LO 6-2, 6-3, 6-4]Work-in-Process Inventory, August 1Conversion: 80% complete 34,000 unitsWork-in-Process Inventory, August 31Conversion: 50% complete 30,000 unitsUnits started 66,000Units completed and transferred out ?CostsWork-in-Process Inventory, August 1Material X $ 64,800Material Y 88,100Conversion 119,880Costs added during AugustMaterial X 152,700Material Y 135,900Conversion 305,120Material X is added at the beginning of work in the mixing department. Material Y is also added in themixing department, but not until units are 60% complete with regard to conversion. Conversion costs areincurred uniformly during the process. The company uses the weighted-average cost method.Required1. Calculate the equivalent units of material X, material Y, and conversion for the mixing department.2. Calculate the cost per equivalent unit for material X, material Y, and conversion.3. Calculate the cost of units transferred out.4. Calculate the cost of the ending Work-in-Process Inventory
Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
Weighted-Average Method Arsenio Company manufactures a single product that goes through
two processes, mixing and cooking. The following data pertain to the mixing department for August:
[LO 6-2, 6-5]
[LO 6-2, 6-3, 6-4]
Work-in-Process Inventory, August 1
Conversion: 80% complete 34,000 units
Work-in-Process Inventory, August 31
Conversion: 50% complete 30,000 units
Units started 66,000
Units completed and transferred out ?
Costs
Work-in-Process Inventory, August 1
Material X $ 64,800
Material Y 88,100
Conversion 119,880
Costs added during August
Material X 152,700
Material Y 135,900
Conversion 305,120
Material X is added at the beginning of work in the mixing department. Material Y is also added in the
mixing department, but not until units are 60% complete with regard to conversion. Conversion costs are
incurred uniformly during the process. The company uses the weighted-average cost method.
Required
1. Calculate the equivalent units of material X, material Y, and conversion for the mixing department.
2. Calculate the cost per equivalent unit for material X, material Y, and conversion.
3. Calculate the cost of units transferred out.
4. Calculate the cost of the ending Work-in-Process Inventory
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