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# Process accounting Equivalent unis PVC Company plastic pipe

The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.

Information on work in the first department, Cooking, is given below for May:

Production data:
Pounds in process, May 1: materials
100% complete; conversion 90% complete 82,000
Pounds started into production during May 470,000
Pounds completed and transferred to
the next department ?
Pounds in process, May 31:
materials 70% complete; conversion 30% complete 42,000
Cost data:
Work in process inventory, May 1:
Materials cost \$ 152,300
Conversion cost \$ 52,300
Materials cost \$ 791,650
Conversion cost \$ 287,390
________________________________________

The company uses the weighted-average method.

Required:
1. Compute the equivalent units of production.

Materials Conversion
Equivalent units of production

________________________________________

Materials Conversion
Cost per equivalent unit \$
\$

________________________________________

3. Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Omit the "\$" sign in your response.)

Materials Conversion Total
Cost of ending work in process inventory \$
\$
\$

Cost of units completed and transferred out \$
\$
\$

________________________________________

Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory \$

Cost added to production during the period

________________________________________
Total cost to be accounted for \$

________________________________________________________________________________
Costs accounted for as follows:
Costs of ending work in process inventory \$

Costs of units completed and transferred out

________________________________________
Total cost accounted for \$

________________________________________________________________________________
________________________________________

#### Solution Summary

Your tutorial is attached in Excel. Click in cells to see computations. This is now a template that you can use for similar problems.

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