The Smith Company Manufactures a Product That Goes Through Two

question 128

Essay

The Smith Company manufactures a product that goes through two departments prior to completion.The following information is available on work in one of these departments,the Forming Department,during March:

Cost in the beginning work-in-process inventory and cost added during the month were as follows:
$\begin{array}{|l|r|r|}\hline & \text { Materials } & \text { Conversion } \\\hline \text { Work in process, March 1 } & \$ 42,190 & \$ 38,000 \\\hline \text { Cost added during March } & \$ 440,810 & \$ 394,000 \\\hline\end{array}$
The Forming Department is the first department in the production process; after forming has been completed,the units are transferred to the Finishing Department.
Required:
a)Assuming the company uses the weighted-average method,calculate the equivalent units and unit cost for materials and conversion costs,rounded to the nearest tenth of a cent.
b)(Appendix 6A)Assuming the company uses the FIFO method,calculate the equivalent units and unit cost for materials and conversion costs,rounded to the nearest tenth of a cent.

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Definitions:

Parallel Connection

A way of connecting electrical components in a circuit so that each component is directly connected to the voltage source, and the current can flow along multiple pathways.

Total Capacitance

The overall capacity of an electrical circuit to store an electric charge, often measured in farads (F).

μ F

Microfarad, a unit of capacitance equal to one millionth of a farad, used to measure the storage of electrical charge.

Dielectric Stress

The molecular stress placed on a dielectric material proportional to the level of applied voltage.