Question

The assembly division of Gannett Watches​, Inc. uses the​ weighted-average method of process costing. Consider the following data for the month of May 2017​:

	Physical Units	Direct	Conversion
	(Watches)	Materials	Costs

Beginning work in process (May 1)a	85	$464,000	$83,200
Started in May 2017	510
Completed during May 2017	450
Ending work in process (May 31)b	145
Total costs added during May 2017		$3,215,000	$1,390,000

a. Degree of​ completion: direct​ materials, 80%; conversion​ costs, 35%.

b. Degree of​ completion: direct​ materials, 80​%; conversion​ costs, 40​%.

		Equivalent Units
Flow of Production	Physical Units	Direct Materials	Conversion Costs
Completed and transferred out during current period	450	450	450
Work in process, ending	145	116	58
Accounted for	595
Work done to date		566	508

Requirements

Summarize the total costs to account​ for, calculate the cost per equivalent unit for direct materials and conversion​ costs, and assign costs to the units completed​(and transferred​ out) and units in ending work in process.

Begin by summarizing the total costs to account for.

		Total	Direct	Conversion
		Production Costs	Materials	Costs
Total costs to account for

Answer 1

		Equivalent Units
Flow of Production	Physical units	Direct materials	Conversion costs
Work in process beginning	85
Started during current period	510
To account for	595
Completed and transferred out during current period	450	450	450
Work in process, ending	145	116 (145*80%)	58 (145*40%)
Accounted for	595
Equivalent units of work done to date		566	508

	Total production costs	Direct materials	Conversion costs
Work in process, beginning	547200	464,000	83,200
Costs added in current period	4605000	3215000	1390000
Total costs to account for	5152200	3679000	1473200
Costs incurred to date		3679000	1473200
Divide by equivalent units of work done to date		566	508
Cost per equivalent unit of work done to date		6500	2900
Assignment of costs:
Completed and transferred out (450 units)	4230000	2925000 (450*6500)	1305000 (450*2900)
Work in process, ending (120 units)	922200	754000 (116*6500)	168200 (58*2900)
Total costs accounted for	5152200	3679000	1473200