Question
In: Accounting
Cleveland Inc. uses the weighted-average method in its process costing system. The following data concern the...
- Cleveland Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department - Cutting - for a recent month.
|
Work-in-process, beginning: |
|
|
Units in process |
300 |
|
Percent complete with respect to materials |
80% |
|
Percent complete with respect to conversion |
70% |
|
Costs in the beginning inventory: |
|
|
Materials cost |
$1,368 |
|
Conversion cost |
$8,064 |
|
Units started into production during the month |
11,000 |
|
Units completed and transferred out |
11,000 |
|
Costs added to production during the month: |
|
|
Materials cost |
$64,948 |
|
Conversion cost |
$412,179 |
|
Work-in-process, ending: |
|
|
Units in process |
300 |
|
Percent complete with respect to materials |
80% |
|
Percent complete with respect to conversion |
10% |
Instructions:
Using the weighted-average method:
a. Determine the cost per equivalent unit for materials and
conversion costs.
b. Determine the cost of units:
- Transferred out of the department during the month.
- Determine the cost of ending work-in-process inventory in the department.
Answer:
- Compute the cost per equivalent unit. Note: the EUP’s are already computed and inserted below.
|
Total Costs |
Materials Costs |
Conversion Costs |
|
|
Current costs |
|||
|
Current EUP’s |
11,240 |
11,030 |
|
|
Cost per EUP |
- Compute the costs of goods transferred out and the ending work-in-process inventory. FIFO method.
|
Total Costs |
Materials Costs |
Conversion Costs |
|
Solutions
Expert Solution
calculate equivalent units of production under weighted average method
| Particular | material | conversion |
| Units completed and transferred out |
(11000×100%) 11000 |
(11000×100%) 11000 |
| Ending inventory |
(300×80%) 240 |
(300×10%) 30 |
| Total equivalent units of production | 11240 | 11030 |
Compute cost per Equivalent unit
| Particular | material | Conversion |
| (a) beginning inventory cost | $1368 | $8064 |
| (b) cost added during the month | $64948 | $412179 |
| (c) total cost(a+b) | $66316 | $420243 |
| (d) equivalent units | 11240 | 11030 |
| Cost per Equivalent unit (c/d) | $5.9 | $38.1 |
Cost of units completed and transferred out
| Material | Conversion | |
| Cost of units completed andtransferred out |
(11000×$5.9) $64900 |
(11000×$38.1) $419100 |
Cost of ending inventory
| MATERIAL | CONVERSION | |
| COST OF ENDING INVENTORY |
(240×$5.9) $1416 |
(30×$38.1) $1143 |
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ekkarill92 answered 1 year agoRelated Solutions
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