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8 March, 17:43

At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department. At the end of the month, the department had 15,000 units in inventory, 40% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Painting Department.

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  1. 8 March, 18:57
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    Equivalent Unit of Material = 120000 + (15000 * 40%)

    Equivalent Unit of Material = 126000 units

    Cost per Equivalent Unit of Material = (22400 + 229600) / 126000

    Cost per Equivalent Unit of Material = 2 per unit

    Equivalent Unit of Conversion Cost = 120000 + (15000 * 10%)

    Equivalent Unit of Conversion Cost = 121500 units

    Cost per Equivalent Unit of Conversion = (6250 + 540500) / 121500

    Cost per Equivalent Unit of Conversion = 4.50 per unit

    So answer is $2.00; $4.50
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