Simply Charmed produces silver lockets that it then sells through an online platform. Simply Charmed is determined to add more jewelry options in the future and would like to have a better understanding of the current performance of their original product, the locket. They are currently about to enter their fourth year of operations, and management would like to see at least a 10% increase in sales. During the most recent year, their production department reported the following information related to the production of lockets for the year:
Simply Charmed uses the Weighted-Average method for its Process Costing. Their accountant will be performing some analysis with the recent year's number for an upcoming strategy session. (Round units to whole number and cost to two decimal places.)
a. What is the cost per equivalent unit for both Direct Materials (DM) and Conversion Costs (CC) for the year?
b. How much cost will be assigned to the units completed and the units in ending WIP Inventory?
c. What is the total cost of units completed and how many units were completed during the year? What is the actual cost per unit for completed units and is it the same as the cost per equivalent unit?

Question

Simply Charmed produces silver lockets that it then sells through an online platform. Simply Charmed is determined to add more jewelry options in the future and would like to have a better understanding of the current performance of their original product, the locket. They are currently about to enter their fourth year of operations, and management would like to see at least a 10% increase in sales. During the most recent year, their production department reported the following information related to the production of lockets for the year:
   Simply Charmed uses the Weighted-Average method for its Process Costing. Their accountant will be performing some analysis with the recent year's number for an upcoming strategy session. (Round units to whole number and cost to two decimal places.)
a. What is the cost per equivalent unit for both Direct Materials (DM) and Conversion Costs (CC) for the year?
b. How much cost will be assigned to the units completed and the units in ending WIP Inventory?
c. What is the total cost of units completed and how many units were completed during the year? What is the actual cost per unit for completed units and is it the same as the cost per equivalent unit?

Quizplus · Accepted Answer

The Answer of Simply Charmed produces silver lockets that it then sells through an online platform. Simply Charmed is determined to add more jewelry options in the future and would like to have a better understanding of the current performance of their original product, the locket. They are currently about to enter their fourth year of operations, and management would like to see at least a 10% increase in sales. During the most recent year, their production department reported the following information related to the production of lockets for the year:
   Simply Charmed uses the Weighted-Average method for its Process Costing. Their accountant will be performing some analysis with the recent year's number for an upcoming strategy session. (Round units to whole number and cost to two decimal places.)
a. What is the cost per equivalent unit for both Direct Materials (DM) and Conversion Costs (CC) for the year?
b. How much cost will be assigned to the units completed and the units in ending WIP Inventory?
c. What is the total cost of units completed and how many units were completed during the year? What is the actual cost per unit for completed units and is it the same as the cost per equivalent unit?

Simply Charmed Produces Silver Lockets That It Then Sells Through