Everglades Furniture Uses a Process Costing System to Account for Its

question 89

Essay

Everglades Furniture uses a process costing system to account for its chair factory. Beginning inventory consisted of 5,000 units (100% complete as to materials, 55% complete as to conversion) with a cost of $124,800 materials and $104,500 conversion. 58,000 units were started into production during the month with material costs of $1,537,000 and $2,124,375 of conversion costs. The ending inventory of 6,000 chairs was 100% complete as to materials and 40% complete as to conversion. Everglades uses weighted-average costing.
Required:
(Use 4 decimal places in your calculations.)
a. Compute the equivalent units of production for each input.
b. Compute the cost per equivalent unit.
c. Compute the cost transferred out to finished goods.
d. Compute the ending work-in-process inventory balance.

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Definitions:

Integumentary

Pertaining to the integument or the skin system, covering and protecting the body's surface and including structures such as scales, feathers, or hair.

Dehydration

The loss or removal of water from a substance or organism, often leading to impairment of normal functions.

Voluntary

Actions or movements that are controlled by the individual's will, often referring to muscle movements.

Smooth Muscle

A type of muscle found in the walls of internal organs and blood vessels, responsible for involuntary movements within the body.