Nonuniform Inputs Apeto Compan
Nonuniform Inputs
Apeto Company produces premium chocolate candy bars. Conversioncosts are added uniformly. For February, EWIP is 30 percentcomplete with respect to conversion costs. Materials are added atthe beginning of the process. The following information is providedfor February:
| Physical flow schedule: | ||
| Units to account for: | ||
| Units inBWIP | 0 | |
| Units started | 60,000 | |
| Total units to account for | 60,000 | |
| Units accounted for: | ||
| Unitscompleted: | ||
| From BWIP | 0 | |
| Startedand completed | 50,000 | 50,000 |
| Units inEWIP | 10,000 | |
| Totalunits accounted for | 60,000 |
|
Inputs |
|
| Direct Materials | Conversion Costs |
| $24,000 | $63,600 |
Required:
1. Calculate the equivalent units for eachinput category.
| Equivalent Units | |
| Direct Materials | |
| Conversion |
2. Calculate the unit cost for each categoryand in total. If required, round your answers to the nearestcent.
| Unit direct materials cost | $ |
| Unit conversion cost | $ |
| Total unit cost | $ |
3. What if adifferent type of materials is also added at the end ofthe process (a candy wrapper), costing $7,500? Calculate the newunit cost. If required, round your answer to the nearestcent.$ per unit
Answer:
New unit cost = Cost of new material / Equivalent units
Equivalent units = Units completed + (Ending inventory xpercentage completed)
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