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

question 35

Essay

On May 1, Dandy Company had a work-in-process inventory of 10,000 units. The units were 100% complete for direct materials 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:

Pure Competition

A market structure characterized by an extremely large number of sellers, none of which can significantly influence price or market conditions due to the homogeneity of the product being sold.

Pure Monopoly

A market structure characterized by a single seller selling a unique product in the market. In a pure monopoly, the single seller controls the entire market supply and sets the price.

Demand Schedule

A table or graph showing the quantity of a good or service that consumers are willing and able to purchase at various prices.

Economic Profit

Profit calculated by subtracting both explicit and implicit costs from total revenues, showing the actual financial gain or loss.