Lakers Inc. employs weighted average process costing system regarding its cross-over protector product. The following data are provided for the year ended December 31, 2016: a. The January 1, 2016

Lakers Inc. employs weighted average process costing system regarding its cross-over protector product. The following data are provided for the year ended December 31, 2016: a.      The January 1, 2016 work-in-process inventory consists of 4,000 units which have the following costs: P100,000-direct material, P250,000-direct labor and P150,000-factory overhead. The beginning inventory is 60% incomplete as to conversion cost. b.      The units started during the year totaled 6,000 units while the units completed during the period totaled 5,000 units. c.      The December 31, 2016 work-in-process inventory consists of 3,000 units which is 90% complete as to conversion cost. d.      The normal spoilage for the company is 20% of units started. e.      The total manufacturing costs added during the year consist of P2M-direct material, P1.5M –direct labor and P1M-factory overhead. f.      The company inspects the products when the percentage of completion in conversion cost is 70%. g.      The company adds direct labor and factory overhead evenly throughout the period while ¼ of direct materials are added at the start of the process while the remaining direct materials are added at the end of the process. The following questions are to be asked in this problem: 1. is the cost per equivalent unit for direct material? (round to the nearest whole number.) 2. is the cost per equivalent unit for conversion cos? (round to the nearest whole number.) The question specifically asked for this number is: is the cost per equivalent unit for conversion costs? (round to the nearest whole number.) Transcribed Image Text: Lakers Inc. employs weighted average proces costing system regarding its cross over protector product. The following data are provided for the year ended December 31, 2016:
The January 1, 2016 work-in process inventory consists of 4,000 units which have the following costs: P100,000-direct material, P250,000-direct labor and P150,000-factory
overhead. The beginning inventory is 60% incomplete as to conversion cost.
b.
a.
The units started during the year totaled 6,000 units while the units completed during the period totaled 5,000 units.
The December 31, 2016 work-in-process inventory consists of 3,000 units which is 90% complete as to conversion cost.
d.
c.
The normal spoilage for the company is 20% of units started.
The total manufacturing costs added during the year consist of P2M-direct material, P1.5M –-direct labor and P1M-factory overhead.
The company inspects the products when the percentage of completion in conversion cost is 70%.
The company adds direct labor and factory overhead evenly throughout the period while 4 of direct materials are added at the start of the process while the remaining
direct materials are added at the end of the process.
The following questions are to be asked in this problem-
e.
f.
g.
1. is the cost per equivalent unit for direct material? (round to the nearest whole number.)
2. is the cost per equivalent unit for conversion cos? (round to the nearest whole number.)
The question specifically asked for this number is:
is the cost per equivalent unit for conversion costs? (round to the nearest whole number.)