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The manager at Puppet and Doll Factory reported 50,000 units of direct materials in the processing ...

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The manager at Puppet and Doll Factory reported 50,000 units of direct materials in the processing ...

The manager at Puppet and Doll Factory reported 50,000 units of direct materials in the processing division. All direct materials are placed in the processing at the beginning of the process and conversion costs occur evenly during the process. The managerial accountant uses the weighted-average costing method and their first goal was to have 10,000 left in processing and 20% converted to factory and labor overhead.

Required
a. Determine the total equivalent units in process and transferred out for direct materials and conversion costs, assuming there is no beginning inventory.
b. With the installation of a new sewing machine, the forecast for the end of the month was to have 2,000 left in process and 80 % converted as to labor and factory overhead. Compute the equivalent units in process and transferred out for direct materials and conversion costs, assuming there was no beginning inventory.

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Managerial Accounting: Decision Making and Motivating Performance

Edition: 1^st

Authors: Datar, Rajan

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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh

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skully Author

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7 years ago

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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh

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