Weighted-Average Method McElroy, Inc. produces a single model of a popular cell phone inlarge quantities. A single cell phone moves through two departments, assembly and testing. The manufacturing costs in the assembly department during March follow:[LO 6-2, 6-4]ProblemsDirect materials $187,500Conversion costs 163,800$351,3006-35 FIFO Method Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of process costing for its monthly reports. TRU has no materials cost in the preparation of the returns. Thefollowing shows its March information:[LO 6-2, 6-3, 6-5]Returns in process, March 1 (30% complete) 100Returns started in March 1,600Returns in process, March 31 (90% complete) 200Labor and overhead costs for returns in process, March 1 $2,500Labor and overhead costs incurred in March $173,250Required Calculate the following amounts for conversion costs using the FIFO method:1. Number of equivalent units (tax returns).2. Cost per equivalent unit.3. Cost of completed tax returns for the month of March.4. Cost of tax returns in process as of March 31.The assembly department has no beginning Work-in-Process Inventory. During the month, it started30,000 cell phones, but only 26,000 were fully completed and transferred to the testing department. All partshad been made and placed in the remaining 4,000 cell phones, but only 50% of the conversion had beencompleted. The company uses the weighted-average method of process costing to accumulate product costs.Required1. Compute the equivalent units and costs per equivalent unit for March in the assembly department.2. Compute the cost of units completed and transferred to the testing department
Weighted-Average Method McElroy, Inc. produces a single model of a popular cell phone in
large quantities. A single cell phone moves through two departments, assembly and testing. The
[LO 6-2, 6-4]
Problems
Direct materials $187,500
Conversion costs 163,800
$351,300
6-35 FIFO Method Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of
following shows its March information:
[LO 6-2, 6-3, 6-5]
Returns in process, March 1 (30% complete) 100
Returns started in March 1,600
Returns in process, March 31 (90% complete) 200
Labor and overhead costs for returns in process, March 1 $2,500
Labor and overhead costs incurred in March $173,250
Required Calculate the following amounts for conversion costs using the FIFO method:
1. Number of equivalent units (tax returns).
2. Cost per equivalent unit.
3. Cost of completed tax returns for the month of March.
4. Cost of tax returns in process as of March 31.
The assembly department has no beginning Work-in-Process Inventory. During the month, it started
30,000 cell phones, but only 26,000 were fully completed and transferred to the testing department. All parts
had been made and placed in the remaining 4,000 cell phones, but only 50% of the conversion had been
completed. The company uses the weighted-average method of process costing to accumulate product costs.
Required
1. Compute the equivalent units and costs per equivalent unit for March in the assembly department.
2. Compute the cost of units completed and transferred to the testing department
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