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26 April, 01:17

Barnett Corporation uses the weighted-average method in its process costing system. The

company adds materials at the beginning of the process in Department M. Material costs

were 100% complete and conversion costs were 75% complete with respect to the 4,000

units in work in process at May 1. Material costs were 100% complete and conversion costs

were 50% complete with respect to the 6,000 units in work in process at May 31. During

May, 12,000 units were completed and transferred to the next department. An analysis of the

costs relating to work in process at May 1 and to production activity for May follows:

Materials Conversion

Work in process, May 1 ... $13,800 $ 3,740

Costs added during May ... $42,000 $26,260

a. The total equivalent units of production for materials are:

b. The total cost per equivalent unit for May was:

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Answers (1)
  1. 26 April, 03:10
    0
    a. 18,000

    b. $5.10

    Explanation:

    Calculation of the total equivalent units of production for materials

    Units of Closing Work In Process (6,000 * 100%) = 6,000

    Units completed and transferred (12,000 * 100%) = 12,000

    Total = 18,000

    Calculation of the total equivalent units of production for conversion

    Units of Closing Work In Process (6,000 * 50%) = 3,000

    Units completed and transferred (12,000 * 100%) = 12,000

    Total = 15,000

    Calculation of Total Cost of Materials

    Work in process $13,800

    Costs added during May $42,000

    Total $55,800

    Calculation of Total Cost of Conversion

    Work in process $ 3,740

    Costs added during May $26,260

    Total $30,000

    Calculation of total cost per equivalent unit for May

    Materials ($55,800/18,000) = $3.10

    Conversion ($30,000/15,000) = $2.00

    Total = $5.10
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