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)
