Question

Required information

[The following information applies to the questions displayed below.]

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 82,000 were in process in the production department at the beginning of April and 328,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 104,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion.

The production department had $1,512,630 of direct materials and $991,230 of conversion costs charged to it during April. Also, its beginning inventory of $242,340 consists of $206,850 of direct materials cost and $35,490 of conversion costs.

1&2. Using the weighted-average method, compute the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output.

Answer 1

Answer

• All working forms part of the answer
• Requirement 1

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	410,000 [82000 + 328000]	100%	410,000	100%	410,000
Units of ENDING WIP	104,000	85%	88,400	35%	36,400
Equivalent Units of Production			498,400		446,400
COST per EUP			Material		Conversion
Cost of Beginning WIP			$        206,850.00		$                                  35,490.00
Cost incurred during the period			$    1,512,630.00		$                                991,230.00
Total Costs		Costs	$    1,719,480.00	Costs	$                            1,026,720.00
Equivalent units of production		EUP	498,400	EUP	446,400
Cost per EUP			$              3.45		$                                      2.30

• Requirement 2

TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	410,000	$                      3.45	$    1,414,500.00
- Conversion	410,000	$                      2.30	$        943,000.00
Total Cost transferred Out				$        2,357,500.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	88,400	$                      3.45	$        304,980.00
- Conversion	36,400	$                      2.30	$          83,720.00
Total cost of ending WIP				$            388,700.00
Total costs accounted for					$                            2,746,200.00