Reference no: EM132869614

Question - Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February:

Work-in-process inventory, February 1 3,300 trusses

Direct materials: 100% complete $10,380

Conversion: 30% complete $15,158

Units started during February 17,900 trusses

Units completed during February and transferred out 16,900 trusses

Work-in-process inventory, February 29 Direct materials: 100% complete

Conversion: 30% complete

Costs incurred during February Direct materials $58,940

Conversion $91,992

Required -

Using the weighted-average method, calculate the following:

1-a. Costs per equivalent unit. (Round your answers to 4 decimal places.)

1-b. Cost of goods completed and transferred out. (Round "Cost per EU" to 4 decimal places. Round final answer to nearest whole dollars.)

1-c. Costs remaining in the Work-in-Process Inventory account. (Round "Cost per EU" to 4 decimal places. Do not round other intermediate calculations. Round final answer to nearest whole dollars.)

2. Assume that you are the company's controller. The production department's February equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 30 to 50% to lower the unit costs, how much would unit cost be affected by this request? (Round your answer to 4 decimal places.)