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    Process accounting Equivalent unis PVC Company plastic pipe

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    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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    https://brainmass.com/business/accounting/process-accounting-equivalent-unis-pvc-company-plastic-pipe-504369

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