Question - Watson Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For May, the following equivalent units schedule was prepared for the first department:
|
|
Direct Materials
|
Conversion Costs
|
|
Units completed
|
5,000
|
5,000
|
|
Units, ending work in process X Percentage complete:
|
|
|
|
6,000 X 100%
|
6,000
|
-
|
|
6,000 X 50%
|
-
|
3,000
|
|
Equivalent units of output
|
11,000
|
8,000
|
Costs assigned to beginning work in process: direct materials, $30,000; conversion costs, $5,000. Manufacturing costs incurred during May: direct materials, $25,000; conversion costs, $65,000. Watson uses the weighted average method.
Required:
1. Compute the unit cost for May. Round your answer to two decimal places.
2. Determine the cost of ending work in process and the cost of goods transferred out.