Swan CorpBegan Work on 3,000 Units This Period

question 74

Essay

Swan Corp.began work on 3,000 units this period.Work in Process Inventory was 500 at the beginning of the period (60% complete)and 1,000 at the end of the period (50% complete).Beginning inventory costs were $3,000 for conversion costs and $7,000 for direct materials.During the period,Swan incurred $75,000 for conversion costs and $52,500 for direct materials.Swan uses the weighted average method of process costing.Direct materials are added at the beginning of the process,and conversion costs are incurred evenly throughout the period.
Required:
Using the weighted average method,compute:
a.How many units were completed during the period?
b.Determine the number of equivalent units for direct materials.
c.Determine the number of equivalent units for conversion costs.
d.Calculate the cost per equivalent unit for direct materials.
e.Determine the cost per equivalent unit for conversion costs.
f.Determine the cost assigned to ending Work in Process Inventory.
g.Determine the cost assigned to goods completed and transferred out.

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Definitions:

Issuance

The process of making securities available for sale to the public or the act of issuing new shares of stock by a company.

Cash Flows

The total amount of money being transferred into and out of a business, especially as it affects liquidity.

Investing Activities

Financial transactions involving the purchase or sale of long-term assets and investments, a component of cash flow statements.

Operating Activities

Operating activities are the day-to-day functions of a business related to producing and selling its goods or services, which are reflected in its earnings.