Solex Company produces a high-quality insulation material that passes through two production processes. Data for June for the first process follow:
| |
Units
|
Completion
with Respect
to Materials
|
Completion
with Respect
to Conversion
|
|
Work in process inventory, June 1
|
52,000
|
75
|
%
|
|
40
|
%
|
|
|
Work in process inventory, June 30
|
32,000
|
50
|
%
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Materials cost in work in process inventory, June 1
|
|
|
|
$
|
45,500
|
|
|
|
Conversion cost in work in process inventory, June 1
|
|
|
|
$
|
12,100
|
|
|
|
Units started into production
|
|
|
|
|
246,000
|
|
|
|
Units transferred to the next process
|
|
|
|
|
266,000
|
|
|
|
Materials cost added during June
|
|
|
|
$
|
309,820
|
|
|
|
Conversion cost added during June
|
|
|
|
$
|
174,220
|
|
|
Required:
1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for June for the first process.
|
Materials
|
Conversion
|
|
Equivalent units of production
|
|
2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 2 decimal places.)
|
Materials
|
Conversion
|
|
|
Cost per equivalent unit
|
$
|
$
|
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Round your intermediate calculations to 2 decimal places. Round your final answer to whole dollar amount.)
|
Total
|
|
|
Cost of ending work in process inventory
|
$
|
|
Cost of units transferred to the next process
|
$
|