Taco Ranch uses a process cost system and the weighted average cost flow assumption. Production begins in the crafting department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On November 1st, the beginning work in process inventory consisted of 10,000 units which were 60% complete and had a cost of $190,000, $100,000 of which were material costs. During November, the following occurred:
Materials added = $225,000
Conversion costs incurred = $45,000
Units completed and transferred out in November = $40,000
Units in ending work in process November 30 (20% complete) = $25,000
ANSWER THE FOLLOWING AND SHOW THE COMPUTATIONS THAT SUPPORT YOUR ANSWERS:
1. What are the equivalent units of production for materials and conversion costs in the Crafting Department for the month of November?
2. What are the costs assigned to the ending work in process inventory on November 30?
3. What are the costs assigned to units completed and transferred out during November?