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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 Summary

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

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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 ...

Purchase this Solution


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