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Physical Flow of Units, Equivalent Units, Unit & Total Costs

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
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


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 $.

Solution Summary

The solution determines the physical flow of units, equivalent units, unit and total costs.