MJ Co. Ltd. assembles various components used in the computer industry. The company’s major product, a disk drive, is the result of assembling three parts: JR1163, JY1065, and DC0766. The following information relates to activities of April:
• Beginning work-in-process inventory: 3,200 units, $293,940 (direct materials, $230,000; conversion cost, $63,940). 80 percent complete with respect to conversion cost.
• Production started: 27,000 units
• Ending work-in-process inventory: 4,000 units, 50 percent complete with respect to conversion cost
• Direct materials used: JR1163, $225,000; JY1065, $710,000; DC0766, $455,000
• Hourly wage of direct labourers, $21; total direct-labour payroll, $134,274
• Overhead application rate: $69 per direct-labour hour
All parts (materials) are completely introduced at the beginning of the manufacturing process; conversion cost is incurred uniformly throughout production.
1. Calculate the total cost of direct material and conversion occurred during April.
2. Determine the total cost of goods completed (manufactured) during the month. (Round to
two decimals for cost per equivalent unit for DM, conversion, and total.)
3. Determine the cost of the work-in-process inventory on April 30.
4. Please reconcile the total costs assigned to the ending work-in-process inventory and the
units completed with the costs in beginning inventory and costs added during April.
1. Calculate the total cost of direct material and conversion occurred during April.Direct MaterialConversionTotal 13900005754601965460 Determine the total cost of goods completed…
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