The Martinez International Company uses a process cost accounting system and a weighted average cost flow assumption. A production department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process.
Data for the month of May are as follows:
Beginning work in
process inventory, 5/1 21,150 units (20% complete)
Units started into
Production 180,850 units
Ending work in
process inventory, 5/31 24,150 units (60% complete)
Instructions
Answer the following questions and show computations to support your answers.
a. Prepare a schedule for May showing the physical unit flow and the units to account for.
b. Compute the equivalent units of production for materials and conversion costs for the month of May.