Question

Applegate Enterprises produces premier raspberry jam. Output is measured in pints. Applegate uses the weighted average method. During January, Applegate had the following production data: Units in process, January 1, 60% complete 208,000 pints Units completed and transferred out 760,000 pints Units in process, January 31, 40% complete 200,000 pints Costs: Work in process, January 1 $208,000 Costs added during January 632,000 Required:

1. Using the weighted average method, calculate the equivalent units for January. 810,000 equivalents units

2. Calculate the unit cost for January. Round your answer to the nearest cent. per unit

3. Assign costs to units transferred out and EWIP. Cost of goods transferred out $ Ending work in process (EWIP)

Answer 1

	Applegate Enterprises
Answer No.
		Actual Units
	Calculation of Physical UNITS:
	Units in beginning inventory	208,000
	Units started during the period	752,000
	Units to be accounted for	960,000
		Actual Units	Equivalent Units
	Units Completed and Transferred	760,000	760,000
	Units in ending inventory	200,000	80,000
1)	No. of Equivalent Units	960,000	840,000
	Costs:
			Cost
	Costs in beginning inventory		208,000
	Cost added during the year		632,000
	Total cost to account for		840,000
	Equivalent Units from above		840,000
2)	Cost per equivalent unit		1.00
			Cost
	Cost Accounted for
3)	Units completed and transfer		760,000
	Units in ending WIP		80,000
	Total Cost Accounted for		840,000