Use weighted-average method on both problems
China Pacific
China Pacific manufactures a variety of natural fabrics for the clothing industry in a neighborhood of Shanghai. The following data pertain to the month of October 20X5.
WIP inventory, October 1 25,000 units
DM: 60% complete $57,000
Conversion: 30% complete $45,000
Costs incurred during October
DM: $736,000
Conversion: $1,094,950
During October 175,000 units were completed and transferred out. At the end of the month, 30,000 units (direct materials 80% complete and conversion 40% complete) remain in WIP inventory.
1. Calculate EU, cost per EU, cost of units transferred out, and cost of WIP ending inventory
Yamamoto
Yamamoto Company manufactures a single product that goes through two processes, mixing and cooking. This data pertains to the mixing department for August 2012:
WIP inventory, August 1 (conversion: 80% complete) 27,000 units
WIP inventory, August 31(conversion 40% complete) 17,000 units
Units started into production 60,000
Units completed and transferred out ?
COSTS
WIP inventory, August 1:
Material X $64,800
Material Y $89,100
Conversion $119,880
Costs added during August:
Material X $152,700
Material Y $138,400
Conversion $302,520
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.
Calculate EU, costs per EU, costs of units transferred out, and cost of WIP ending inventory