Question

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day.

Beginning WIP inventory
Direct materials	$	1,010
Conversion costs		527
Current period costs
Direct materials		24,060
Conversion costs		14,398

Quantity information is obtained from the manufacturing records and includes the following.

Beginning inventory	700	units	(70% complete as to materials, 54% complete as to conversion)
Current period units started	5,700	units
Ending inventory	1,900	units	(50% complete as to materials, 25% complete as to conversion)

Compute the cost of goods transferred out and the ending inventory using the weighted-average method. (Do not round intermediate calculations.)

	Costs of goods transferred out Costs in ending inventory

Answer 1

• Requirement asked

Cost of Goods transferred out = $ 34200
Cost in ending inventory = $ 5795

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	4,500	$                      4.60	$          20,700.00
- Conversion	4,500	$                      3.00	$          13,500.00
Total Cost transferred Out				$              34,200.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	950	$                      4.60	$             4,370.00
- Conversion	475	$                      3.00	$             1,425.00
Total cost of ending WIP				$                 5,795.00

• Related working

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	4,500	100%	4,500	100%	4,500
Units of ENDING WIP	1,900	50%	950	25%	475
Equivalent Units of Production			5,450		4,975
COST per EUP			Material		Conversion
Cost of Beginning WIP			$             1,010.00		$                                        527.00
Cost incurred during the period			$          24,060.00		$                                  14,398.00
Total Costs		Costs	$          25,070.00	Costs	$                                  14,925.00
Equivalent units of production		EUP	5,450	EUP	4,975
Cost per EUP			$              4.60000		$                                      3.00000