Reference no: EM132967929

Question - Within a manufacturing facility, the finishing department is the final process before the product is transferred to finished goods.

The finishing department is analyzing costs from the month of April under a process costing scenario.

At the start of March there was no beginning inventory. During March, the department completed and transferred 140,000 units to finished goods. An additional 40,000 were started, but not completed at the end of the month. For those left in WIP, they are assumed to be 75% complete with respect to direct materials and 40% complete with respect to conversion (labor and overhead).

Assume in March the following amount was spent on direct materials and conversion:

-Materials = $200,000

-Conversion = $175,000

-What are the equivalent units completed in the period for direct materials?

-What are the equivalent units completed in the period for conversion costs?

-What is the per unit cost in March for direct materials? $

-What is the per unit cost in March for conversion? $

-What is the total value of COGS in March (only account for units transferred to finished goods)? $

-What is the cost of the WIP at the end of March? $

-Suppose the flexible budget for conversion costs (direct labor and overhead) was based on the following: $105,000 fixed plus $0.30 per unit. What was the expected cost from the flexible budget for March? $

-Where the actual conversion costs favorable or unfavorable compared to the budget?