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Question - Watson Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For May, the following equivalent units schedule was prepared for the first department:
Direct Materials
Conversion Costs
Units completed
5,000
Units, ending work in process X Percentage complete:
6,000 X 100%
6,000
-
6,000 X 50%
3,000
Equivalent units of output
11,000
8,000
Costs assigned to beginning work in process: direct materials, $30,000; conversion costs, $5,000. Manufacturing costs incurred during May: direct materials, $25,000; conversion costs, $65,000. Watson uses the weighted average method.
Required:
1. Compute the unit cost for May. Round your answer to two decimal places.
2. Determine the cost of ending work in process and the cost of goods transferred out.
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