Arsenio Company manufactures a single product that goes through two processes, mixing and cooking. The...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Arsenio Company manufactures a single product that goes through two processes, mixing and cooking. The following data pertain to the mixing department for August:
Work-in-process inventory, August 1
Conversion: 90% complete
33,000
units
Work-in-process inventory, August 31
Conversion: 50% complete
32,000
units
Units started
67,000
Units completed and transferred out
?
Costs
Work-in-process inventory, August 1
Material X
$
68,100
Material Y
83,300
Conversion
118,660
Costs added during August
Material X
152,200
Material Y
141,100
Conversion
284,540
Material X is added at the beginning of work in the mixing department. Material Y is also added in the mixing department, but not until units are 70% complete with regard to conversion. Conversion costs are incurred uniformly during the process. The company uses the weighted-average cost method.
Required:
1. & 2. Calculate the equivalent units and costs per equivalent unit of material X, material Y, and conversion for the mixing department.
3. Calculate the cost of units transferred out.
4. Calculate the cost of the ending Work-in-Process Inventory.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
