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    Process costing

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    Part 7: The Perry Company

    Perry Company. has the following information for November:

    Beginning Work in Process Inventory
    (70% complete as to conversion) 6,000 units
    Started 24,000 units
    Ending Work in Process Inventory
    (10% complete as to conversion) 8,500 units

    Beginning WIP Inventory Costs:
    Material $23,400
    Conversion 50,607

    Current Period Costs:
    Material $31,500
    Conversion 76,956

    All material is added at the start of the process and all finished products are transferred out.

    a. How many units were transferred out in November?

    b. Assume that weighted average process costing is used. What is the cost per equivalent unit for material?

    c. Assume that FIFO process costing is used. What is the cost per equivalent unit for conversion?

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    Solution Preview

    Part 7: The Perry Company

    Perry Company. has the following information for November:

    Beginning Work in Process Inventory
    (70% complete as to conversion) 6,000 units
    Started 24,000 units
    Ending Work in Process Inventory
    (10% complete as to conversion) 8,500 units

    Beginning WIP Inventory Costs:
    Material $23,400
    Conversion 50,607

    Current Period Costs:
    Material $31,500
    Conversion 76,956

    All material is ...

    Solution Summary

    Soltuion shows calculations of number of units transferred out and cost per equivalent unit under weighted average process costing and FIFO.

    $2.49

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