Weatherly Lumber Company process wood pulp for manufacturingvarious paper products. The company employs aa process costingsystem for its manufacturing operations, All direct materials areadded at the beginning of the process, and conversion costs areincurred uniformly throughout the process. This is the company'sproduction schedule for My:
Work-in-Process Inventory, May 1 Tons of pulp 5,000 Materials100% conversion 50%
Started during May Tons of pulp 18,000
Units to account for 23,000
Units from beginning Work-in-Process, which were completed andtransferred out during May Tons of pulp, 5,000
Started and complete during May. 10,800
Work-in-Process Inventory, May 31 Tons of pulp 7,00 materials100% Conversion 50%
Total units accounted for 23,000
Work-in-Process Inventory, May 1
Direct Materials $82,100
Conversion 61,342
Costs Incurred during May
Direct materials 283,140
Conversion 358,280
1. Calculate the equivalent units of direct materials andconversion during May. Use the FIFO method.
2. Calculate the cost per equivalent unit for both directmaterials and conversion during May. Use the FIFO method.
