Question

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:

Equivalent units of production—direct materials		102,000	EUP
Equivalent units of production—conversion		88,000	EUP
Costs in beginning Work in Process—direct materials	$	54,800
Costs in beginning Work in Process—conversion	$	40,300
Costs incurred in February—direct materials	$	463,500
Costs incurred in February—conversion	$	582,200

The cost per equivalent unit of production for direct materials is:

part b

During November, the production department of a process operations system completed and transferred to finished goods 40,000 units that were in process at the beginning of November and 140,000 that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 65% complete with respect to conversion. At the end of November, 31,000 additional units were in process in the production department and were 100% complete with respect to materials and 45% complete with respect to conversion. Compute the number of equivalent units with respect to conversion for November using the weighted-average method.

part c

During March, the production department of a process operations system completed and transferred to finished goods 27,000 units that were in process at the beginning of March and 180,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 24,000 additional units were in process in the production department and were 100% complete with respect to materials and 60% complete with respect to labor. The production department incurred direct materials cost of $254,100 and its beginning inventory included materials cost of $93,800. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

Answer 1

• Part [a]
  Cost per Equivalent unit for direct material
  = ($54800 + 463500) / 102000 EUP
  = $ 5.08
• Part [b]

--With working

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	180,000	100%	180,000	100%	180,000
Units of ENDING WIP	31,000	100%	31,000	45%	13,950
Equivalent Units of Production			211,000

• Part [c]

Direct material cost per equivalent units = $ 1.51 [or $ 1.50606]

EUP - Weighted Average Method	Units	% Material	EUP Materials
Units TRANSFERRED	207,000	100%	207,000
Units of ENDING WIP	24,000	100%	24,000
Equivalent Units of Production			231,000
COST per EUP			Material
Cost of Beginning WIP			$        254,100.00
Cost incurred during the period			$          93,800.00
Total Costs		Costs	$        347,900.00
Equivalent units of production		EUP	231,000
Cost per EUP			$              1.50606