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Topic
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EUP–equivalent unit production
How difficult it is? I checked the answers to these questions because I had no idea how to start. And even reading the answers, I still have no clue for this question
A sporting goods manufacturer buys wood as a direct material for baseball bats. The forming dept processes the baseball bats, and the bats are then transferred to the finishing department, where a sealant is applied. The forming department began manufacturing 10,000 “Casey Sluggers” during the month of May. Therre was no begging inventory. Costs for the Forming Department for the month of May were as follows:
Direct materials: $33,000
Conversion costs: $17,000
Total $50,000A total of 8,000 bats were completed and transferred to the Finishing Department; the remaining 2,000 bats were still in the forming process at the end of the month. All of the forming department’s direct materials were placed in process, but, on average, only 25% of the conversion cost was applied to the ending work in progreess inventory.
1. The cost of the units transferred to the finishing department is
A. 50,000
B. 40,000
C. 53,000
D. 42,0002. The cost of the work in progress inventory in the forming department at the end of May is
A. 10,000
B. 2500
C. 20,000
D. 7600Okay, the answer for both of the questions, first sentence says this:
The total EUP for materials equal 10,000 because all materials for the ending work in process had already been added to production/work in progress is 100% complete as to materials (2k + 8K)
What???
Where is EUP? How do you get it without applying the weighted average and FIFO equation?
FAR-80AUD-77
REG-75
BEC-82
I'm done done!
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