finding the equivalent units for materials


Finding  the equivalent units for materials and conversion.

Bell Computers, Ltd., located in Liverpool, England, assembles a standardized personal computer from parts it purchases from various suppliers. The production process consists of several steps, starting with assembly of the \"mother\" circuit board, which contains the central processing unit. This assembly takes place in the CPU Assembly Department. The company recently hired a new accountant who prepared the following report for the department for May using the weighted-average method:

 

Quantity Schedule

 

Units to be accounted for:

 

Work in process, May 1 (materials 90% complete; conversion 80% compete)

5,000

Started into production

29,000

Total units

34,000

Units to be accounted for as follows:

 

Trasferred to next department

30

Work in process, May 31 (materials 75% complete; conversion 50% compete)

4,000

Total units

34,000

 

Cost Reconciliation

 

Cost to be accounted for:

 

Work in process, May 1

£ 13,400

Cost added in the department

87,800

Total cost to be accounted for

£101,200

Cost accounted for as follows:

 

Work in process, May 31

£ 8,200

Trasferred to next department

93,000

Total cost accounted for

£101,200

The company\'s management would like some additional information about May\'s operation in the CPU Assembly Department. (The currency in England is the pound, which is denoted by the symbol £.)

What were the costs per equivalent unit for May?

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Financial Accounting: finding the equivalent units for materials
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