Question

Below is the cost information for June and July, 2020.

	Physical Units	Direct Materials	Conversions Costs	Total
Beg. Work in Progress (July 1, 2020)	250	$78,750	$77,813	$156,813
Transferred to Finished Goods	725
Ending Work in Progress  (July 31, 2020)	200
Costs added July 2020		$271,875	$295,800	$567,675

The production manager informs you that the Beginning Work in Progress  (July 1) was 90% complete as to direct materials and 75% complete as to conversion costs. He also estimates that the Ending Work in Progress  (July 31) is 50% complete as to materials and 35% complete as to conversion costs.

Use the Five-Step Process for assigning costs. Spartans Inc uses the weighted average method for assigning costs. Clearly label and explain each step. Show all calculations.

Answer 1

Spartans Inc.
Flow of Production	Physical Units	Raw Material	Conversion
Work in Process Beginning	250
Started during Period	675
To account for	925
Units Completed(100%)	725	725	725
Work in Process Ending(200*50%),(200*35%)	200	100	70
Equivalent Units	925	825	795
Costs	Total	Transferred In	Conversion
Work in Process beginning	$                  1,56,563.00	$                    78,750.00	$                  77,813.00
Costs added during the period	$                  5,67,675.00	$                2,71,875.00	$              2,95,800.00
Total cost to account for	$                  7,24,238.00	$                3,50,625.00	$              3,73,613.00
Cost per Equivalent unit=($724238/925),($350625/825),(373613/795)	$                            894.95	$                          425.00	$                        469.95
Assignment of costs
Completed Units(725*894.95)			$              6,48,841.26
Work in Process Ending
Direct Material(100*$425)		$                    42,500.00
Conversion(70*$469.95)		$                    32,896.74	$                  75,396.74
Costs accounted for			$              7,24,238.00