Diulio Company Produces a Product in a Process-Costing System Involving

question 124

Essay

Diulio Company produces a product in a process-costing system involving several departments.The company uses the weighted-average method of process costing.The first department's data for the month of April follow:
$\begin{array} { l } \text { Units in beginning work-in-process inventory}&15,000 \\ \text { Units started during April}& 140,000\\ \text {Units completed during April }&120,000 \\ \text {Units in ending work-in-process inventory }&35,000 \\\end{array}$

$\begin{array} { l } \text {Direct materials added in current month}&\$168,000 \\ \text {Conversion costs added in current month }&\$186,000 \\ \text { Direct materials-beginning Work-in-process inventory }&\$ 25,750\\ \text {Conversion costs-beginning work-in-process inventory }&\$ 3,225\\\end{array}$

Stage of Completion:
$\begin{array}{lll}&\text { Materials }&\text { Conversion Costs }\\\text { Beginning work-in-process inventory } & 50 \% & 40 \% \\\text { Ending work-in-process inventory } & 50 \% & 30 \%\end{array}$
Required:
A) Compute equivalent units for materials and conversion costs.
B) Compute the cost per unit for materials and conversion costs. Round to two decimal places.
C) Compute the cost of the units transferred.
D) Compute the cost of the ending work-in-process inventory.

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Definitions:

Continuous Reinforcement

A conditioning schedule where every correct response or desired behavior is followed by a reward, used to establish or strengthen behaviors.

Food-deprived Rats

A condition used in experiments where rats are not given food for a period of time to study the effects of hunger on behavior and physiology.

Lever

A simple mechanical device consisting of a rigid bar that pivots on a fixed point, used to apply force and move an object at one end by applying force to the other.

Fixed-interval

In the context of psychology, it refers to a schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.