On May 1, Diggton Company Had a Work-In-Process Inventory of 10,000

question 34

Essay

On May 1, Diggton Company had a work-in-process inventory of 10,000 units. The units were 100% complete for material and 30% complete for conversion, with respective costs of $30,000 and $1,850.
During the month, 150,000 units were completed and transferred to finished goods. The May 31 ending work-in-process inventory consisted of 10,000 units that were 100% complete with respect to materials and 80% complete with respect to conversion.
Costs added during the month were $330,000 for materials and $503,750 for conversion.
Required:
Using the weighted-average method, calculate:

A. total equivalent units for material and conversion.
B. the cost per equivalent unit for material and conversion.
C. the cost transferred to finished goods.
D. the cost of ending work in process.

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Definitions:

Average Total Cost

The average expense for each unit of output, calculated by dividing the overall production cost by the total number of units produced.

Average Fixed Cost

The cost that remains constant per unit of output as total production increases or decreases.

Minimum Point

The lowest point on a curve, often related to economic graphs such as cost curves, indicating the least quantity of cost or effort.

Marginal Cost

The additional cost incurred from producing one more unit of a product or service.