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Home Q & A Board Other Fields Homework Help Business Accounting
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Neptunesx101x Neptunesx101x
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A month ago
Stewart Manufacturing uses a process costing system. Information regarding units processed and processing costs for the Packaging Department for the most recent period are given below:

​​NumberPercentage
​of UnitsComplete
Beginning Work in Process Inventory1,20025%
Units started into production10,000​
Units completed and transferred out of Packaging9,400​
Ending Work in Process Inventory1,80035%

The beginning Work in Process Inventory had processing costs of $10,000. During the month, an additional $290,000 in processing costs were incurred. Materials and conversion costs are incurred at the same rate.

Required:

a.What are the equivalent units for processing costs for the Packaging Department for
the month?
b.What is the cost per equivalent unit for the month? Round to two decimals.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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diana72gdiana72g
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A month ago
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More solutions for this book are available here
a.Equivalent units:
Units to account for:
​Work in Process, beginning1,200
​Started into production10,000
Total units to be accounted for11,200
Units accounted for:EU — Materials & Conversion
Transferred out  9,400  9,400
Ending inventory  1,800     630
Total units accounts for11,20010,030

b.Cost per equivalent unit
Costs to account for:
​Work in Process, beginning$  10,000
​Cost added  290,000
Total cost$300,000
Cost per equivalent:  $300,000 ÷ 10,030 = $29.91
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Neptunesx101x Author
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A month ago
Correct Slight Smile TY
husne
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Yesterday
this is exactly what I needed
einstein
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2 hours ago
Thank you, thank you, thank you!
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