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	116,000 pints
Units completed and transferred out	760,000 pints
Units in process, January 31, 40% complete	225,000 pints
Costs:
Work in process, January 1	$116,000
Costs added during January	734,000

Required:

1. Using the weighted average method, calculate the equivalent units for January.
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)

$ 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 116,000 pints Units completed and transferred out 760,000 pints Units in process, January 31, 40% complete 225,000 pints Costs: Work in process, January 1 $116,000 Costs added during January 734,000 Required: 1. Using the weighted average method, calculate the equivalent units for January. 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

Solution

Requirement 1

Equivalent Units of Production

850,000

Requirement 2

Cost per equivalent Unit

$                                1.00

Requirement 3

Cost of goods transferred out	$                         760,000
Ending work in process (EWIP)	$                           90,000

Working

Statement of Equivalent Units(Weighted average)
	Units			Complete %	Equivalent units
Transferred out	760,000			100%	760,000
Ending WIP	225,000			40%	90,000
Total	985,000			Total	850,000

.

Beginning WIP Inventory Cost (A)		$ 116,000
Cost incurred during period (B)		$ 734,000
Total Cost to be accounted for (C=A+B)		$ 850,000
Total Equivalent Units(D)		850,000
Cost per Equivalent Units (E=C/D)		$                   1.00

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
All costs	$ 1.00	90,000	$          90,000.00	760,000	$        760,000.00