Physical Flow of Units, Equivalent Units, Unit & Total Costs
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Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process.
Work in process, June 1 - 50,000 units:
Direct material: 100% complete, cost of $ 120,000
Conversion: 40% complete, cost of 34,400
Balance in work in process, June 1 $ 154,400
Units started during June 200,000
Units completed during June and
transferred out to finished-goods inventory
190,000
Work in process, June 30:
Direct material: 100% complete
Conversion: 60% complete
Costs incurred during June:
Direct material $ 492,500
Conversion costs:
Direct labor $ 87,450
Applied manufacturing overhead 262,350
Total conversion costs $ 349,800
Required:
Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing.
1. Analysis of physical flow of units.
Physical Units
Total units to account for
Total units accounted for
2. Calculation of equivalent units.
Equivalent Units
Physical Units Direct Material Conversion
Total units accounted for
Total equivalent units
3. Computation of unit costs. (Round Cost per unit to 2 decimal places.
Direct Material Conversion Total
$ $ $
Total costs to account for $ $ $
Equivalent units
Costs per equivalent unit $ $ $
4. Analysis of total cost (Round Cost per unit to 2 decimal places.
Number of equivalent units Cost per equivalent unit Total cost
Direct material $ $
Conversion $
Total cost of June 30 work in process $.
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Solution Summary
The solution determines the physical flow of units, equivalent units, unit and total costs.
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