Arsenio Company manufactures a single product that goes through two processes, mixing and cooking. The...
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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
27,000
units
Work-in-process inventory, August 31
Conversion: 50% complete
27,000
units
Units started
73,000
Units completed and transferred out
?
Costs
Work-in-process inventory, August 1
Material X
$ 69,000
Material Y
88,400
Conversion
119,620
Costs added during August
Material X
157,400
Material Y
130,600
Conversion
338,830
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 60% 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.
(Round "Cost per Equivalent Unit" answers to 2 decimal places.)
Material X
Material Y
Conversion
Equivalent Units
Cost per Equivalent Unit
3. Calculate the cost of units transferred out.
Cost of Units Transferred Out
4. Calculate the cost of the ending Work-in-Process Inventory.
Cost of Ending Work-in-Process
Answer & Explanation
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