Moon Company produces baseball bats and cricket paddles. It has two departments that process all products – Cutting Department and Finishing Department.

In Finishing Department, direct materials (DM) are added at the start of the process and conversion costs (CC) are added evenly during the process. Company is using Weighted Average method for the Finishing Department.

During July, beginning work in process in the Finishing Department was 80% complete as to conversion. Beginning inventories included $30,800 for transferred-in costs, $13,200 for direct materials, and $27,500 for conversion costs. Ending inventory was 30% complete as to CC. Additional information about the Finishing Department follows:



Finishing

Beginning work-in-process units

26,400

Units transferred in this period

74,800

Units completed & transferred out

79,200

Ending work-in-process units

22,000





Material costs added

$37,400

Conversion costs

$75,460

Transferred-in costs

$141,240



What is equivalent units for transferred-in cost, direct materials, and conversion cost, respectively? Separate with slash /.
Moon Company produces baseball bats and cricket paddles. It has two departments that process all products – Cutting Department and Finishing Department.

In Finishing Department, direct materials (DM) are added at the start of the process and conversion costs (CC) are added evenly during the process. Company is using Weighted Average method for the Finishing Department.

During July, beginning work in process in the Finishing Department was 80% complete as to conversion. Beginning inventories included $30,800 for transferred-in costs, $13,200 for direct materials, and $27,500 for conversion costs. Ending inventory was 30% complete as to CC. Additional information about the Finishing Department follows:



Finishing

Beginning work-in-process units

26,400

Units transferred in this period

74,800

Units completed & transferred out

79,200

Ending work-in-process units

22,000





Material costs added

$37,400

Conversion costs

$75,460

Transferred-in costs

$141,240



What is equivalent units for transferred-in cost, direct materials, and conversion cost, respectively? Separate with slash /.
Moon Company produces baseball bats and cricket paddles. It has two departments that process all products – Cutting Department and Finishing Department.

In Finishing Department, direct materials (DM) are added at the start of the process and conversion costs (CC) are added evenly during the process. Company is using Weighted Average method for the Finishing Department.

During July, beginning work in process in the Finishing Department was 80% complete as to conversion. Beginning inventories included $30,800 for transferred-in costs, $13,200 for direct materials, and $27,500 for conversion costs. Ending inventory was 30% complete as to CC. Additional information about the Finishing Department follows:



Finishing

Beginning work-in-process units

26,400

Units transferred in this period

74,800

Units completed & transferred out

79,200

Ending work-in-process units

22,000





Material costs added

$37,400

Conversion costs

$75,460

Transferred-in costs

$141,240



What is equivalent units for transferred-in cost, direct materials, and conversion cost, respectively? Separate with slash /.
Moon Company produces baseball bats and cricket paddles. It has two departments that process all products – Cutting Department and Finishing Department.

In Finishing Department, direct materials (DM) are added at the start of the process and conversion costs (CC) are added evenly during the process. Company is using Weighted Average method for the Finishing Department.

During July, beginning work in process in the Finishing Department was 80% complete as to conversion. Beginning inventories included $30,800 for transferred-in costs, $13,200 for direct materials, and $27,500 for conversion costs. Ending inventory was 30% complete as to CC. Additional information about the Finishing Department follows:



Finishing

Beginning work-in-process units

26,400

Units transferred in this period

74,800

Units completed & transferred out

79,200

Ending work-in-process units

22,000





Material costs added

$37,400

Conversion costs

$75,460

Transferred-in costs

$141,240



What is equivalent units for transferred-in cost, direct materials, and conversion cost, respectively? Separate with slash /.

Respuesta :

The Moon Company's equivalents units for transferred-in cost, direct materials, and conversion cost are 74,800 / 101,200 / 86,800 respectively.

Data and Calculations:

Percentage of completion:

Beginning work in process = 80%

Ending work in process = 30%

Beginning inventories:

Transferred-in costs = $30,800

Direct materials costs = $13,200

Conversion costs = $27,500

Physical Flows of Units:

Beginning WIP = 26,400

Units transferred in from Cutting Department = 74,800

Total production units available = 101,200 (26,400 + 74,800)

Units completed and transferred out = 79,200

Ending WIP = 22,000

                                 Transferred-in   Direct Materials   Conversion

Units transferred out                                   79,200             79,200

(79,200 x 100%)

Units transferred-in         74,800                          0                      0

(74,800 x 100%)

Ending WIP                                0               22,000 (100%)   6,600 (22,000 x 30%)

Total equivalent units    74,800              101,200             86,800

Thus, the equivalent units for the Finishing Department are determined based on the percentage of completion under the Weighted Average Method.

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