Material accounting

| June 5, 2016

Question
Material cost accounting

ยท The Malbim Company uses a process costing system. Materials are added at the beginning of the process. On July 1 there are 400 units in the beginning inventory that are 100% complete as to materials. With regard to labor and overhead, however, the units in beginning inventory (July 1) are only 75% complete.

During July, 10,000 units were placed in production; of these, 7,400 were completed and transferred to the next department. On July 31, the remaining 3,000 units were 20% complete with regard to labor and overhead.

Required: (Be sure to show your calculations for each)

Using the Weighted Average method, calculate the equivalent units of

Direct Materials
Direct Labor and Factory Overhead

Using the FIFO method, calculate the equivalent units of

Direct Materials
Direct Labor and Factory Overhead

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