Equivalent Unit Calculation
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:
- Compute equivalent units for each department.
- Compute cost per unit for each department.
- Price out the ending inventories for each department.(Reconciliation)
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