Question

g Beginning WIP inventory Direct materials costs $ 31,300 Conversion costs 40,700 Current period costs Direct materials costs $ 290,950 Conversion costs 1,139,550 Required: a. Compute the cost equivalent units for the conversion cost calculation assuming Campo uses the weighted-average method. b. Compute the cost per equivalent unit for materials and conversion costs for November.

Answer 1

conversion units 580,100

materials units 617,000

equivalent unit cost materials: $ 0.52

equivalent unit cost conversion: $ 2.03

Step-by-step explanation:

MISSING INFORMATION:

Materials are added at the beginning

Beginning work in process (56% complete) 57,000

Started in November 560,000

Completed in November and transferred out 535,000

Ending work in process (55% complete) 82,000

Weighted-Average:

completed + percentage of completion

conversion:

535,000 + 82,000 x 55% = 580,100 units

materials:

535,000 + 82,000 x 100% = 617,000 units

Cost per EU:

Materials cost:

31,300 + 290,950 = 322.250‬

per unit 322,250 / 617,000 = $ 0,5222

Conversion cost

1,139,500 + 40,700 = 1,180,200‬

per unit $ 1,180,200 / 580,100 = $ 2,03