Process costing equivalent units and product cost The information below pertains to October production at Zippy Company’s bottling plant, which produces and bottles sports drinks. Each unit consists of a case of 12 bottles:
|
|
UNITS |
MATERIALS |
CONVERSION |
|
Work in process, October 1 |
2,000 |
70% complete |
60% complete |
|
Started in October |
10,000 |
|
|
|
To account for |
12,000 |
|
|
|
Completed and transferred out |
8,000 |
100% complete |
100% complete |
|
Work in process, October 30 |
4,000 |
40% complete |
25% complete |
|
Accounted for |
12,000 |
|
|
|
Costs, beginning of October |
|
$1,050 |
$3,240 |
|
Added during October |
|
8,200 |
22,620 |
|
To be accounted for |
|
$9,250 |
$25,860 |
Required
(a) Using the weighted average method, determine the number of equivalent units of production for materials and conversion during October.
(b) Determine the cost per equivalent unit for materials and conversion for October and the total cost per equivalent unit. (Round to two digits after the decimal point.)
(c) Determine whether the cost per equivalent unit for materials and conversion increased or decreased from the previous month.