Question

In: Accounting

The Lakeside Company uses a weighted-average process costing system. The following data are available: Beginning inventory...

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.

Solutions

Expert Solution

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


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