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.
