Question

Pant Risers manufactures bands for self-dressing assistive devices for mobility-impaired individuals. Manufacturing is a one-step process where the bands are cut and sewn. This is the information related to this year’s production:

Units to Account For	Units	Materials	Conversion
Beginning work in process inventory	500	500	250
Started	20,500
Total units to accounted for	21,000

Ending inventory was 100% complete as to materials and 80% complete as to conversion, and the total materials cost is $58,380 and the total conversion cost is $36,516.

Using the weighted-average method, what are the unit costs if the company transferred out 18,000 units? If required, round final answers to two decimal places.

	Cost per unit
Materials	$
Conversion	$

Using the weighted-average method, what is the value of the inventory transferred out and the value of the ending WIP inventory?

Inventory transferred out	$
Ending WIP inventory	$

Answer 1

	Statement of Equivalent Units
		Materials	Conversion
	Units Completed & Transferred out	18,000	18,000
	Ending work in process ( 21,000 - 18,000 )	3,000	2,400
	( Materials 100% , Conversion 80%)
	Equivalent units of production	21,000	20,400
		Materials	Conversion
	Beginning Work in process Costs	500	250
	Add: Cost incurred	58,380	36,516
	Total Costs	58,880	36,766
	/ Equivalent units of production	21,000	20,400
	Cost per equivalent unit	2.80	1.80
1.)	Cost of units transferred out
		Cost per Unit
	Materials	$ 2.80
	Conversion	$ 1.80
2.)	Value of Inventory transferred out	$ 82,800
	=18000*2.8+18000*1.8
	Value of Ending Inventory	$ 12,720
	=3000*2.8+2400*1.8