Question

Bruton Inc. manufactures snowhshoes using a two-department process. Direct materials are added at the beginning of the process in both the Assembly Department and the Finishing Department. Conversion costs are applied uniformly during both processing departments. The following has been reported for the Finishing Department for the month of October: Units in beginning work in process (65% complete) 21,700 Units in ending work in process (75% complete) 18,600 Units transferred in from Assembly in October 54,100 Costs in beginning work in process: Transferred-in costs $89,520 Direct materials $30,340 Conversion costs $31,880 Cost of units transferred in from Assembly in October $433,500 Costs added during October: Direct materials $125,050 Direct labor $75,600 Applied overhead $120,200 Assume Bruton, Inc. uses the weighted-average method, what was the total cost of completed units transferred out of the Finishing Department in October?

Answer 1

		Units
Reconciliation of Units
A	Opening WIP	21,700
B	Introduced	54,100
C=A+B	TOTAL	75,800
D	Transferred	57,200
E=C-D	Closing WIP	18,600

Statement of Equivalent Units
		Cost Transferred		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	57,200	100%	57,200	100%	57,200	100%	57,200
Closing WIP	18,600	100%	18,600	100%	18,600	75%	13,950
Total	75,800	Total	75,800	Total	75,800	Total	71,150

Cost per Equivalent Units
COST	Cost Transferred	Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost	$        89,520.00	$    30,340	$               31,880	$      151,740
Cost incurred during period	$      433,500.00	$ 125,050	$             195,800	$      754,350
Total Cost to be accounted for	$      523,020.00	$ 155,390	$             227,680	$      906,090
Total Equivalent Units	75,800	75,800	71,150
Cost per Equivalent Units	$ 6.90	$ 2.05	$ 3.20

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Cost Transferred	$ 6.90	18,600	$ 128,340.00	57,200	$ 394,680.00
Material	$ 2.05	18,600	$          38,130	57,200	$        117,260
Conversion Cost	$ 3.20	13,950	$          44,640	57,200	$        183,040
		TOTAL	$        211,110	TOTAL	$        694,980

Cost accounted for
Cost of Units transferred	Equivalent Units	Cost per Equivalent Units	Cost accounted for
Cost Transferred	57,200	$         6.90	$ 394,680.00
Material	57,200	$         2.05	$ 117,260.00
Conversion Cost	57,200	$         3.20	$ 183,040.00
				$     694,980.00
Cost of ending WIP	Equivalent Units	Cost per Equivalent Units	Cost accounted for
Cost Transferred	18,600	$         6.90	$ 128,340.00
Material	18,600	$         2.05	$    38,130.00
Conversion Cost	13,950	$         3.20	$    44,640.00
				$     211,110.00
Total Cost accounted for				$     906,090.00

Total cost of completed goods transferred out of Finishing department is $ 694,980.00