Q.18-4SE Question: Cadwell manufactures c... [FREE SOLUTION]

Chapter 18: Q.18-4SE (page 1007)

Question: Cadwell manufactures cell phones. The conversion costs to produce cell phones for November are added evenly throughout the process in the Assembly Department. The company uses the weighted-average method. For each of the following separate assumptions, calculate the equivalent units of production for conversion costs in the ending Work-in-Process Inventory for the Assembly Department:
1. 12,000 cell phones were 60% complete
2. 21,000 cell phones were 40% complete

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Answer:

1. The equivalent unit of production when the 12,000 cell phones were 60% completed is 7,200 units.

2. The equivalent unit of production when the 21,000 cell phones were 40% completed is 8,400 units.

$E q u a l e n t u n i t o f p r o d u c t i o n = N o . o f u n i t s 脳 P e r c e n t a g e o f c o m p l e t i o n = 12, 000 脳 60 % = 7, 200$

$E q u a l e n t u n i t o f p r o d u c t i o n = N o . o f u n i t s 脳 P e r c e n t a g e o f c o m p l e t i o n = 12, 000 脳 40 % = 8, 400$

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Unit in process at the beginning of august	900
Units started in august	2,000
Units completed and transferred	2,100
Units in process at the end of august	800

Gallons
Beginning work-in-process inventory	0 gallons
Started in production	8,500 gallon
Completed and transferred out to packaging in may	6,500 gallon
Ending work-in-process inventory (30% of the way through the blending process)	2,000 gallon
Costs
Beginning work-in-process inventory	\(0
Costs added during May:
Direct materials	5,525
Direct labor	1,500
Manufacturing overhead allocated	2,547
Total costs added during May	\)9,572

Beginning WIP-Direct materials cost	\(500
Beginning WIP-Conversion cost	1,210
Direct material added during the month	5,800
Conversion cost added during the month	5,230
Total	\)12,740