Problem - Marida products, Inc. produces plastic used for video cameras. The product passed through three departments. For April, the following equivalent units schedule was prepared for the first department:
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Direct Materials
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Conversion Costs
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Units completed
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5,000
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5,000
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Units, ending work in process x percentage complete:
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6,000 x 100%
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6,000
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-
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6,000 x 50%
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-
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3,000
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Equivalent units of output
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11,000
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8,000
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Costs assigned to beginning work in process: direct materials $30,000; conversion costs, $5,000. Manufacturing costs incurred during April: direct materials, $25,000; conversion costs, $65,000. Marida uses the weighted average method.
Required:
1. Compute the unit cost for April.
2. Determine the cost of ending work in process and the cost of goods transferred out.