Reference no: EM132843660
Nour Company manufactures plastic reusable water bottles for Aayan Company and uses the weighted average process costing method to cost the bottles. This question relates to process 2. Process 2 receives the manufactured plastic bottles from process1, and adds to it a holder, a strap, and the bottle top. These are the three direct materials added in process 2.
The following information relates to process 2:
- Holder- added at the start of the second process
- Strap- added at 50% completion level of the second process
- Bottle Top- added at the end of the second process
Beginning Balance on January 1:
10,000 bottles that were 60% complete:
- $4,500 Transferred In
- $3,000 Holder
- $8,000 Strap
- $ - Bottle Top
- $11,000 Conversion Cost
Transferred in from Process 1 in January:
- 90,000 bottles $56,000
Ending balance on January 31:
- 8,000 bottles that were 90% complete
Cost incurred in January:
- Holder $30,000
- Strap $58,000
- Bottle Top $81,600
- Conversion Cost $98,120
Problem 1: Calculate the equivalent units of bottles completed and transferred out (C&T)
Problem 2: Calculate the total ending units of conversion
Problem 3: Calculate the cost of the bottles completed and transferred out during January
Problem 4: Calculate the cost of ending work in process