Question

The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process):

	Units	Material Costs
Beginning work in process	110,000	$	31,000
Started in May	260,000		108,200
Units completed	235,000
Ending work in process	135,000

Required:

Compute the cost per equivalent unit for materials using the weighted-average method.

1. Total costs to be accounted for?______

2. Cost per equilavent unit?______

Answer 1

		Material
1)	Cost to be accounted for	139,200
2)	Cost per equivalent unit	0.38
	Cost Reconciliation Report
	Costs to be accounted for:
		Total
	Costs in beginning inventory	31,000
	Cost added during the year	108,200
	Total cost to account for	139,200
		Total
	Cost Accounted for
	Units completed and transfer	88,411
	Units in ending inventory	50,789
	Total Cost Accounted for	139,200
	Moline
	Production Cost Report
	Working Note 1:
		Actual Units
	Calculation of Physical UNITS:
	Units in beginning inventory	110,000
	Units started during the period	260,000
	Units to be accounted for	370,000
		Actual Units	Equivalent Units
			Material
	Units Completed and Transferred	235000	235000
	Units in ending inventory	135000	135000
	Total accounted for	370000	370000
	Working Note 2:
	Costs to be accounted for:
		Total	Material
	Costs in beginning inventory	31,000	31,000
	Cost added during the year	108,200	108,200
	Total cost to account for	139,200	139,200
	Equivalent Units from above		370000
	Cost per equivalent unit		0.38