Wednesday, 3 October 2012

Solex Company produces a high-quality insulation material that passes through two production processes. Data for June for the first process follow:

Solex Company produces a high-quality insulation material that passes through two production processes. Data for June for the first process follow:

  Units Completion
with Respect
to Materials
Completion
with Respect
to Conversion
  Work in process inventory, June 1 76,000   75 %   40 %  
  Work in process inventory, June 30 56,000   50 %   25 %  
                
  Materials cost in work in process inventory, June 1       $ 60,000      
  Conversion cost in work in process inventory, June 1       $ 17,800      
  Units started into production         258,000      
  Units transferred to the next process         278,000      
  Materials cost added during June       $ 408,180      
  Conversion cost added during June       $ 256,680      


Required:
1.
Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for June for the first process.

  Materials Conversion
  Equivalent units of production


2.
Compute the costs per equivalent unit for June for the first process. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

  Materials Conversion
  Cost per equivalent unit $ $


3.
Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Omit the "$" sign in your response.)

  Total
  Cost of ending work in process inventory $
  Cost of units transferred to the next process $



Explanation: