Question

Burnt Ham Company uses the weighted-average method in its process costing system. The Curing Department of Burnt Company reported the following information for the month of November:

Beginning work in process: 30% complete for materials, and 80% complete for conversion.

Ending work in process: 40% complete for materials, and 70% complete for conversion.

Cost Summary	Materials	Conversion
Work in process, November 1	$ 34,500	$ 48,600
Added during November	$146,000	$194,400
	Units
Work in process, November 1	10,000
Started in November	28,000
Total	38,000
Work in process November 30	8,000
Completed and transferred out (You calculate this number.)

Required Prepare a Production Report for the company’s November production using the weighted-average method. You will need to include the following:

A)Units to account for.

B)The equivalent units of production for materials and conversion.

C)The cost per equivalent unit for materials and conversion. (Round to three decimals. There will be a small final rounding error).

D)The total cost assigned to units transferred out of the Curing Dept. during November (costs must be in dollars and cents).

E)The total cost of the work in process inventory on November 30 (costs must be in dollars and cents).

F)A cost reconciliation.

Answer 1

• Requirement A

Units to account for = 8000 ending WIP + 30000 units transferred = 38,000 units

• Requirement B

	Material	Conversion
Equivalent units of production	33,200	35,600

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	30,000	100%	30,000	100%	30,000
Units of ENDING WIP	8,000	40%	3,200	70%	5,600
Equivalent Units of Production			33,200		35,600

• Requirement C

COST per EUP			Material		Conversion
Cost of Beginning WIP			$          34,500.00		$                                  48,600.00
Cost incurred during the period			$        146,000.00		$                                194,400.00
Total Costs		Costs	$        180,500.00	Costs	$                                243,000.00
Equivalent units of production		EUP	33,200	EUP	35,600
Cost per EUP			$              5.437		$                                      6.826

• Requirement D

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	30,000	$                      5.437	$        163,110.00
- Conversion	30,000	$                      6.826	$        204,780.00
Total Cost transferred Out				$            367,890.00

• Requirement E

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	3,200	$                      5.437	$          17,398.40
- Conversion	5,600	$                      6.826	$          38,225.60
Total cost of ending WIP				$              55,624.00

• Requirement F

Costs to be accounted for:
Cost of Beginning WIP Inventory	$           83,100.00
Cost added to production during the period	$         340,400.00
Total Cost to be accounted for	$         423,500.00
Costs accounted for as follows:
Cost of units transferred out	$         367,890.00
Cost of Ending WIP Inventory	$           55,624.00
Total Cost accounted for	$         423,514.00
Difference due to rounding off	$                 (14.00)