Question

Adam Company uses the weighted-average method in its process costing system. The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process):

	Number of Units	Labour and overhead percentage complete
Work in process inventory, Sept. 1	60,000	15%
Transferred in the during the month	105,000
Work in process inventory, Sept. 30	40,000	20%

	Transferred In	Materials	Labour and overhead
Beginning work-in-process inventory		$30,000	$16,000
Cost added during the month		$63,000	$320,000

What are the equivalent units of production for material for the month?

Answer 1

Final Answer:	Equivalent units of production for material	165000
	Production Cost Report
	For the month ended Sep 30
		Actual Units
	Calculation of Physical UNITS:
	Units in beginning inventory	60000
	Units started during the period	105000
	Units to be accounted for	165000
			Equivalent Units
		Actual Units	Material	Conversion Cost
	Units Completed and Transferred	125000	125000	125000
	Units in ending inventory	40000	40000	8000
	Equivalent Units	165000	165000	133000
	Costs:
			Material	Conversion Cost	Total
	Costs in beginning inventory		30000	16000	46000
	Cost added during the year		63000	320000	383000
	Total cost to account for		93000	336000	429000
	Equivalent Units from above		165000	133000
	Cost per equivalent unit		0.56	2.53
			Material	Conversion Cost	Total
	Cost Accounted for
	Units completed and transfer		70454.55	315789.5	386244
	Units in ending inventory		22545.45	20210.53	42755.98
	Total Cost Accounted for		93000	336000	429000