Question

Walser Inc. produces a product that passes through two processes. During February, equivalent units were calculated using the weighted average method:

Units completed	200,000
Add: Units in EWIP X Fraction complete:
(57,930 X 30%)	17,379
Equivalent units of output (weighted average)	217,379
Less: Units in BWIP X Fraction complete:
(20,000 X 80%)	16,000
Equivalent units of output (FIFO)	201,379

The costs that Walser had to account for during the month of February were as follows:

Beginning work in process	$109,000
Costs added	1,301,790
Total	$1,410,790

1. Using the weighted average method, determine unit cost. If required, round your answer to the nearest cent and use rounded amount in subsequent requirements.

2. Under the weighted average method, what is the total cost of units transferred out? What is the cost assigned to units in ending inventory? If required, round your answers to the nearest dollar.

Cost of units transferred out

Cost of ending inventory

Answer 1

	Weighted Average	Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
A1.	Quantities			Equivalent Units
			Whole Units	Materials
	Units accounted for
	Transferred out		200000	200000
	Work in Process, Ending	80%	20000	16000
	Equivalent Units-Weighted Average		220000	216000
A2.	Cost
				Materials
	Work in Process, Beginning			109000
	add:Started into production			1301790
	Total Cost to account for			1410790
	Equivalent Units			216000
	Unit Cost	Total Cost/Equivalent Units		6.53
2.	Cost accounted for
	Work in Process, Ending		Material
	Equivalent Units		16000
	Cost per Equivalent Unit		6.53
	-Total Cost Accounted For		104503
	Unit Completed and transferred out
	Equivalent Units		200000
	Cost per Equivalent Unit		6.53
	-Total Cost Accounted For		1306287