Edge Company Had a Beginning Work-In-Process Inventory of 30,000 Units

question 83

Essay

Edge Company had a beginning work-in-process inventory of 30,000 units on June 1. These units contained $120,000 of direct materials and $272,000 of conversion cost. The following data relate to activity during June: $$\begin{array} { l r } \text { Production completed (units) } & 70,000 \\\text { Ending work in process, } 60 \% \text { complete (units) } & 20,000 \\\text { Direct materials used (\$) } & 258,000 \\\text { Conversion cost (\$) } & 695,600\end{array}$$
Edge uses a weighted-average process-costing system. All materials are added at the start of manufacturing; in contrast, conversion cost is incurred evenly throughout production.
Required:
A. Compute the total equivalent units for direct material and conversion cost.
B. Compute the cost per equivalent unit of direct material and conversion cost.
C. Determine the cost of completed production.
D. Determine the cost of the June 30 work in process.

---

Definitions:

Expenses

The costs incurred in the process of generating revenue, including but not limited to rent, salaries, and utilities.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.

Financial Record

Documents that capture all the financial transactions of an individual or an organization, serving as a historical account of financial health and activity.

Statement of Cash Flows

A financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents.