Kahil Mfg. makes skateboards and uses a weighted average process costing system. On May 1, 2013, the company had 400 boards in p

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Kahil Mfg. makes skateboards and uses a weighted average process costing system. On May 1, 2013, the company had 400 boards in p

rocess that were 70 percent complete as to material and 85 percent complete as to conversion. During the month, 3,800 additional boards were started, and 300 boards were still in process (40 percent complete as to material and 60 percent complete as to conversion) at the end of May. Cost information for May 2013 is as follows:
Beginning WIP Inventory costs
Direct material ........ $ 4,349
Conversion .......... 4,658
Current period costs
Direct material ........ 60,775
Conversion .......... 46,750
a. Calculate EUP for each cost component using the weighted average method.
b. Calculate cost per EUP for each cost component.

Business

1 answer:

shutvik [7] · Answer 1 · 2023-10-04T06:14:25+03:00

Answer:

Equivalent Units Materials 1700 Conversion 2630

Cost per EUP Materials: 38.308 Conversion : 19.55

Explanation:

The weighted average method can be calculated using the beginning inventory and the units started .

Kahil Mfg

Weighted Average Method

Particulars Units % Of Completion Equivalent Units

Materials Conversion Materials Conversion

Beginning

Inventory 400 70 85 280 350

Units Started 3800 40 60 1520 2280

Equivalent Units 1700 2630

Beginning WIP Inventory costs

Direct material Conversion

$ 4,349 4,658

Current period costs

60,775 46,750

Total Costs 65,124 51,408

Cost per EUP

65,124/1700 51,408/2630

38.308 19.55