Piscataway Plastics Company manufactures a highly

P4-26  Straightforward Weighted Average Process Costing,  Step-by-Step Approach

Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process.

Work in process, June 1—50,000 units:                                                                      50,000

     Direct material: 100% complete cost of                                                      120,000

     Conversion: 40% complete, cost of                                                                        34,400

          Balance in work in process, June 1                                                        154,400

Units started during June                                                                                 200,000

Units completed during June and transferred out to finished-goods inventory            190,000

     Work in process, June 30:

          Direct material: 100% complete

          Conversion: 60% complete

Costs incurred during June:

     Direct material                                                                                            492,500

Conversion costs:

          Direct labor.                                                                                           87,450

Applied manufacturing overhead                                                        262,350

          Total conversion costs                                                                           349,800

Required:

Prepare schedules to accomplish each of the following process-costing steps for the month

1. Analysis of physical flow of units.

2. Calculation of equivalent units.

3. Computation of unit costs.

4. Analysis o f t otal c osts.