Equivalent Unit Calculation College Paper Lab | collegepaperslab.com

Business Finance

Equivalent Unit Calculation College Paper Lab | collegepaperslab.com

Clearwater Paper Company manufactures rolled finished paper. Following is the information relative to the departmental costs and production:

Cooking:

Costs:

  Beginning WIP:

  Direct materials  $20,000

  Conversion  $20,000

  Costs incurred during June 2010:

  Direct materials  $80,000

  Conversion  $20,000

Units:  Beginning WIP  10,000

  Units completed  60,000

  Ending WIP12,000

  100% complete for materials

  50% complete for conversion

Coating:

Costs:

  Beginning WIP:

  Transferred in  $25,000

  Direct materials  $20,000

  Conversion  $4,000

  Costs incurred during June 2010:

  Transferred in  ?

  Direct materials  $42,000

  Conversion   $6,000

Units:

  Beginning WIP  10,000

  Completed62,000

  Ending WIP:

  50% complete for both materials and conversion

Drying:

Costs:

  Beginning WIP:

  Transferred in  $35,000

  Direct materials  $0

  Conversion  $25,000

  Cost incurred during June 2010:

  Transferred in  ?

  Direct materials  $15,000

  Conversion costs  $30,000

Units:  Beginning WIP  15,000

  Completed70,000

  Ending WIP:  ?

  80% for conversion, 0% for direct materials

Required:

  1. Compute equivalent units for each department.
  2. Compute cost per unit for each department.
  3. Price out the ending inventories for each department.(Reconciliation)

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