Cornerstone of Cost Management: E6-20 Holmes Products Inc., produces plastic cases
Cornerstone of Cost Management Exercise 6.20 Weighted Average Method, Unit Cost, Valuation of Good transferred Out and Ending Work in Process Holmes Products Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department: Direct Materials Conversion Costs Units completed 25,000 25,000 Units, ending work in process: 8,000 x 100% 8,000 8,000 x 50% 4,000 Equivalent units of output 33,000 29,000 Cost assigned to beginning work in process: direct materials, $90,000; conversion costs, $33,750. Manufacturing costs incurred during April; direct materials. $75,000; conversion costs, $220,000. Holmes uses the weighted average method Required: 1. Compute the unit cost for April. If required, round your answers to the nearest cent. 2. Determine the cost of ending work in process and the cost of good transferred out.
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