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.

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Definitions:

Central Executive

The process that coordinates rehearsal systems and retrieves memory from and transfers information to permanent memory.

Phonological Loop

A component of the working memory model that deals with the storage and manipulation of verbal and auditory information.

Visuospatial Sketchpad

A component of working memory responsible for temporarily holding and processing visual and spatial information.

Episodic Buffer

The system that binds visual and verbal information in the long-term store and retrieves information from the long-term store.