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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
Cost added during May:
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

________________________________________

2. Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

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 $
$
$

________________________________________

4. Prepare a cost reconciliation report for the month. (Omit the "$" sign in your response.)

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 $

________________________________________________________________________________
________________________________________

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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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