WEEK 2: HOMEWORK ASSIGNMENT
Pappy’s Iced Tea makes iced tea that is sold in grocery stores in New York, NY. The product is created in the brewing department, then is sent off to the bottling department, where it is bottled and the bottles are labeled. The following information pertains to the operations of the Brewing Department for February.
Percent CompletedUnitsMaterialsConversionWork in Process, Beginning 10,00080%25%Started into Production 200,000Completed & Transferred Out 190,000Work in Process, Ending 20,00090%35%MaterialsConversionWork in Process, Beginning$ 35,000$ 25,000Costs Added During February$314,400$ 246,860
Assume that the company uses the weighted-average method.
- Determine the equivalent units for February for the Brewing Department.
- Compute the costs per equivalent unit for the Brewing Department. Round the unit costs to two decimal places.
- Determine the total cost of ending work in process inventory and the total cost of units transferred to the Bottling Department.