Nike Company produces an artificial cherry flavoring that passes through two production processes. Nike uses the weighted-average method to account for units and costs. Data for June for process 1 follow:
|
% Completion |
|
Units |
Materials |
Conversion |
| WIP inventory, Jun 1 |
70,000 |
80% |
40% |
| WIP inventory, Jun 30 |
40,000 |
60% |
35% |
| Materials cost in WIP, Jun 1 |
$ 62,260 |
| Conversion cost in WIP, Jun 1 |
$ 19,620 |
| Units started into production |
310,000 |
| Materials cost added during Jun |
$ 425,500 |
| Conversion cost added during Jun |
$ 256,500 |
Question 1. What are the equivalent units for Jun for process 1?
Question 2. Compute the costs per equivalent unit for Jun process 1.
Questiion 3. Determine the total cost of ending WIP inventory in Jun.
Question 4. Determine total cost of units transferred to process 2 in Jun.
Nestle Company makes rubber cement. Data for Nestle's Mixing department is given below. Assume Nestle uses the weighted-average method in its process costing system.
|
|
% Complete |
|
Units |
Materials |
Conversion |
| Ending WIP |
45,000 |
60% |
35% |
|
Materials |
Conversion |
| Cost/EU |
$ 6.50 |
$ 9.50 |
Question 5. Determine the total cost assigned to the ending WIP inventory for the Mixing department.