Annin Laboratories uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for February: Beginning WIP inventory Direct materials $ 26,553 Conversion costs 8,605 Current period costs Direct materials 159,792 Conversion costs 82,020 Quantity information is obtained from the manufacturing records and includes the following: Beginning inventory 6,000 units (40% complete as to materials, 15% complete as to conversion) Current period units started 45,200 units Ending inventory 23,000 units (75% complete as to materials, 35% complete as to conversion) Required: Compute the equivalent units for the materials and conversion cost calculations. Compute the cost per equivalent unit for direct materials and conversion costs

Annin Laboratories uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for February: Beginning WIP inventory Direct materials $ 26,553 Conversion costs 8,605 Current period costs Direct materials 159,792 Conversion costs 82,020 Quantity information is obtained from the manufacturing records and includes the following: Beginning inventory 6,000 units (40% complete as to materials, 15% complete as to conversion) Current period units started 45,200 units Ending inventory 23,000 units (75% complete as to materials, 35% complete as to conversion) Required: Compute the equivalent units for the materials and conversion cost calculations. Compute the cost per equivalent unit for direct materials and conversion costs

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section: Chapter Questions

Problem 111P

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Beginning WIP inventory
Direct materials	$ 26,553
Conversion costs	8,605
Current period costs
Direct materials	159,792
Conversion costs	82,020

Beginning inventory	6,000	units	(40% complete as to materials, 15% complete as to conversion)
Current period units started	45,200	units
Ending inventory	23,000	units	(75% complete as to materials, 35% complete as to conversion)

Required:

Compute the equivalent units for the materials and conversion cost calculations.
Compute the cost per equivalent unit for direct materials and conversion costs.

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Step 1: Computation of the equivalent units for the materials and conversion using the FIFO method

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Step 2: Computation of the cost per equivalent unit for direct materials and conversion costs for February

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