Answer Happy

Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Units completed Units in EWIP X Fraction complete (36,000 X 60%) Equivalent units of output June's costs to account for are as follows: BWIP (10,000 units, 80% complete) Materials Conversion costs Total Required: 53,400 21,600 75,000 $50,000 90,000 34,000 $174,000 1. Calculate the unit cost for June using the weighted average method. Round your answer to the nearest cent. per unit Cost of ending work in process Cost of the goods transferred out 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. If required, round your answers to the nearest dollar.

Units in EWIP X Fraction complete (36,000 X 60%) Equivalent units of output June's costs to account for are as follows: BWIP (10,000 units, 80% complete) Materials Conversion costs Total 21,600 75,000 $50,000 90,000 34,000 $174,000 Required: 1. Calculate the unit cost for June using the weighted average method. Round your answer to the nearest cent. per unit 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. If required, round your answers to the nearest dollar. Cost of ending work in process Cost of the goods transferred out 3. Cassien had just finished implementing a series measures designed to reduce the unit cost to $2.00 and was assured that this had been achieved and should be realized for June's production. Yet, upon seeing the unit cost for June, the president of the company was disappointed. Can you explain why the full effect of the cost reductions may not show up in June? What can you suggest to overcome this problem?