Question

Brenda enterprise had the following information for FY 2018:

Work in process -1/1/18 100,000 units

Units started into production 575,000 units

Work in process -12/31/18 75,000 units

Direct material put into production $575,000

Conversions costs put into production $843,750

The beginning work in process was 100% complete as to direct materials and 75% complete as to conversion costs

The beginning work in process consisted of:

Direct material $943,750

Conversion cost $303,750

Brenda Enterprise uses the weighted-average method.

1. the equivalent units of production for direct materials

2. the cost per equivalent unit for materials

3. the equivalent units of production for conversion

4. the cost per equivalent unit for conversion

5. the cost that should be assigned to Brenda enterprise work in process at the end

Answer 1

Solution-1) Equivalent units of production for direct materials: 675,000

Solution-2) Cost per equivalent unit for materials: $2.25

Solution-3) Equivalent units of production for conversion: 637,500

Solution-4) Cost per equivalent unit for conversion: $1.80

Solution-5) Cost that should be assigned to Brenda enterprise work in process at the end: $236,250

?

Working:

Schedule-Equivalent Units
Particulars	Material	Conversion
Beginning WIP @ 100,000 (75% complete for CC)	100,000	100,000
Started and Complete during the month (500,000 units)	500,000	500,000
Ending WIP @ 75,000 (50% complete for CC)	75,000	37,500
???? Totals	675,000	637,500

Schedule - Unit Cost Computation
Item:	Total Costs	Equivalent Units	Per Unit Cost
Material Costs	$1,518,750	675,000 u	$2.25
Conversion Costs	$1,147,500	637,500 u	$1.80
???? Totals amount	$2,666,250		$4.05

Material Costs: ?BWIP = $943,750; Month =?575,000; Total?=?$1,518,750

Conversion Costs: ?BWIP =?$303,750; Month =?$843,750; Total?=?$1,147,500

Schedule - Cost Allocation
Completed and Transferred Out:
??????? 600,000 units X $4.05 per unit		$2,430,000
Ending WIP,
?????? Material Cost (75,000 units X $2.25 per unit )	$168,750
?????? Conversion Costs (75,000 units X 50% complete X $1.80 per unit)	$67,500
?? Total Ending WIP		$236250
Total Costs to Account for:		$2,666,250