Marcus Corporation, Which Uses the Weighted-Average Method of Process Costing

question 28

Essay

Marcus Corporation, which uses the weighted-average method of process costing, reported the following as of February 1:
$\begin{array}{l}\text { Work in process, Feb. 1: }\\\begin{array} { l r } \text { Direct material } & \$ 42,000 \\\text { Conversion } & 20,000 \\\text { February production costs: } & \\\text { Direct material } & 470,000\\\text { Conversion } &280,000 \end{array}\end{array}$ Conversations with the production supervisor revealed that materials are introduced at the start of the process and conversion costs are incurred evenly throughout the manufacturing process. The company started 29,000 units during the month. Goods in process at the beginning and end of February totalled 3,000 units and 5,000 units, respectively, the latter batch being 60% complete.
Just prior to leaving on vacation, a trusted staff assistant was asked to compute the cost of February's ending work-in-process inventory. Her calculations showed a huge rise in unit cost when compared with the February 1 figures, soaring to $250 [($470,000 + $280,000) ÷ 3,000 units (5,000 units x 60%)].
Required:
A. Did the staff assistant make any errors in her calculations? Explain.
B. Analyze the company's production volume and determine the proper equivalent-unit figures for February.
C. Calculate the proper unit costs for February.
D. Calculate the cost of the February 28 work-in-process inventory.

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