Binding Company Prints Calendars

question 11

Essay

Binding Company prints calendars.All direct materials are added at the inception of the printing process.There were 20,000 units in beginning inventory with a direct material cost of $1,000 and conversion costs of $3,760.
During the month of April,160,000 calendars were started and 144,000 calendars were completed.Direct materials cost $26,000 for the month of April.Conversion costs for the month of April were $20,000.
Ending work-in-process units are 100% complete with regard to direct materials and 40% complete with regard to conversion costs.The weighted-average method of process costing is used by Binding Company.
Required:
A)Compute the equivalent units for materials and conversion costs.
B)Compute the unit costs for materials and conversion costs.
C)Compute the cost of units transferred.
D)Compute the cost of ending work-in-process inventory.

• A)Compute the equivalent units for materials and conversion costs.
• B)Compute the unit costs for materials and conversion costs.
• C)Compute the cost of units transferred.
• D)Compute the cost of ending work-in-process inventory.

---

Definitions:

Economies

The large set of interrelated production and consumption activities that aid in determining how scarce resources are allocated.

Diseconomies

Circumstances where increasing the scale of production leads to higher per-unit costs, often due to inefficiencies gained at larger scales.

Average Total Costs

The average cost per unit is calculated by dividing the entire production cost by the quantity of units produced.

Total Fixed Costs

The sum of all costs that remain constant in total amount regardless of changes in the level of production or output.