Question

Pacific Ink had beginning work-in-process inventory of $760,000 on October 1. Of this amount, $305,920 was the cost of direct materials and $454,080 was the cost of conversion. The 49,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs.

During October, 104,000 units were transferred out and 31,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $2,282,000 for direct materials and $3,101,850 for conversion.

Compute the costs of goods transferred out and the ending inventory using the weighted-average method. (Round intermediate calculations to 2 decimal places.)

Answer 1

		Material	Conversion Costs
	Units Transferred Out (A)	1,04,000	1,04,000
	Equivalent Closing Units (31000*80%/40%)	24,800	12,400
	Equivalent Units	1,28,800	1,16,400
	Cost Per Equivalent Unit:	Material	Conversion Costs	Whole Unit
	Work in Process Opening	3,05,920	4,54,080
	Add: Costs Added During the Period	22,82,000	31,01,850
	Total Cost to be Accounted	25,87,920	35,55,930
	Equivalent Units	1,28,800	1,16,400
	Cost Per Equivalent Unit	20.09	30.55	50.64000
		Material	Conversion Costs	Total
	Units Transferred	1,04,000	1,04,000
	Cost Per Equivalent Unit	20.09	30.55
	Total Cost Assigned to Transferred Units	20,89,360	31,77,200	52,66,560
		Material	Conversion Costs	Total
	Equivalent Closing Units (31000*80%/40%)	24,800	12,400
	Cost Per Equivalent Unit	20.09	30.55
	Total Cost Assigned to Closing Units	4,98,232	3,78,820	8,77,052