In: Accounting
The Lakeside Company uses a weighted-average process costing system. The following data are available:
Beginning inventory | -0- | ||
Units started in production | 21,600 | ||
Units finished during the period | 16,700 | ||
Units in process at the end of the period (complete as to materials, ¼ complete as to labor and overhead) | 4,900 |
||
Cost of materials used | $ | 44,720 | |
Labor and overhead costs | $ | 46,865 | |
Total cost of the 16,700 units finished is: (Round intermediate calculations to two decimal places and round your final answer to the nearest whole dollar).
$91,620.
$81,831.
$83,976.
$78,156.
Correct Answer --- $78,156
Calculations
Units |
||
Reconciliation of Units |
||
A |
Opening WIP |
- |
B |
Introduced |
21,600 |
C=A+B |
TOTAL |
21,600 |
D |
Transferred |
16,700 |
E=C-D |
Closing WIP |
4,900 |
Statement of Equivalent Units |
|||||
Material |
Conversion Cost |
||||
Units |
Complete % |
Equivalent units |
Complete % |
Equivalent units |
|
Transferred |
16,700 |
100% |
16,700 |
100% |
16,700 |
Closing WIP |
4,900 |
100% |
4,900 |
25% |
1,225 |
Total |
21,600 |
Total |
21,600 |
Total |
17,925 |
Cost per Equivalent Units |
|||||||||
COST |
Material |
Conversion Cost |
TOTAL |
||||||
Cost incurred during period |
$ 44,720 |
$ 46,865 |
$ 91,585 |
||||||
Total Cost to be accounted for |
$ 44,720 |
$ 46,865 |
$ 91,585 |
||||||
Total Equivalent Units |
21,600 |
17,925 |
|||||||
Cost per Equivalent Units |
$ 2.07 |
$ 2.61 |
|||||||
Statement of cost |
|||||||||
Cost |
Equivalent Cost/unit |
Ending WIP |
Transferred |
||||||
Units |
Cost Allocated |
Units |
Cost Allocated |
||||||
Material |
$ 2.07 |
4,900 |
$ 10,143 |
16,700 |
$ 34,569 |
||||
Conversion Cost |
$ 2.61 |
1,225 |
$ 3,197 |
16,700 |
$ 43,587 |
||||
TOTAL |
$ 13,340 |
TOTAL |
$ 78,156 |
||||||
Total Cost transferred for 16700 units = $78,156