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aleksandr82 [10.1K]
3 years ago
9

Beckronski Company has the following information available for the month of​ March: Units ​Transferred- in Costs Direct Material

s Conversion Costs Workminusinminusprocess ​inventory, March 1 240 ​$33,600 0 ​$18,000 ​*Percent complete ​100% ​0% ​62.5% Transferredminusin during March 400 Completed in March 440 Workminusinminusprocess ​inventory, March 31 200 ​*Percent complete ​100% ​0% ​80% Costs added in March ​$52,000 ​$13,200 ​$48,600 The company uses the weightedminusaverage cost method of process costing. What are the equivalent units for March for direct​ materials?
Business
1 answer:
storchak [24]3 years ago
4 0

Answer:

Direct Material Equivalent Unit Weighted Average Cost Method= 240+ 400- 400= 240

Units Cost for Direct Materials= $52,000 /230= $ 226.086

Explanation:

Beckronski Company

                              Units ​                    Transferred- in Costs

                                            Direct Mat       Conversion Costs      WIP ​inventory

March 1                  240 ​         $33,600           0 ​                            $18,000 ​

<u>Percent complete                    ​100% ​              0% ​                         62.5%</u>

Equivalent Units                     240                     -                          150                                            

Transferred in

<u> March                 400                                                                                    </u>

Equivalent Units                          400                    400                   400

Mar 31  WIP ​inventory,  200

<u>​*Percent complete                       ​100%           ​0% ​                         80%       </u>

Equivalent Units                         400                    -                        320

Weighted Average Cost Method = Beg. Inv Equiv. Units + Units Transferred in Less Ending Inventory Equivalent Units

Direct Material Equivalent Unit Weighted Average Cost Method= 240+ 400- 400= 240

Conversion Costs Equivalent Unit Weighted Average Cost Method=

0+ 400-0= 400

Work In Process Equivalent Unit Weighted Average Cost Method=

150+ 400-320= 230

Costs added in March ​              $52,000            ​$13,200 ​        $48,600

Units Cost for Direct Materials=  $52,000 /230= $ 226.086

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