Acc349 Cost Accounting: E3-5 In Kagan Company, materials are entered at the beginning of each

Acc349 Cost Accounting
Week 3

E3-5
In Kagan Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2011 are as follows.

Beginning Work in Process Ending Work in Process
Month Units Conversion Cost% Units Transferred Out Units Conversion Cost%
January - - 7,000 2,000 60%
March - - 12,000 3,000 30%
May - - 16,000 5,000 80%

July - - 10,000 1,500 40%


Instructions:
a. Compute the physical units for January and May. (If answer is zero, please enter 0. Do not leave any fields blank).
b. Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.
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