Question

Suburbia Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for February 2016 are as follows:

Production data:
In process, beginning of month (20% converted)	1,000 units
Started during February	5,000 units
Completed and transferred to finished goods	4,500 units
In process, end of month (60% converted)	1,500 units
Manufacturing costs:
Work in process, beginning (Materials $3,000 [≈ Weekend trip for two to Hawaii]; Conversion Costs: $18,360)	$21,360
Materials	$45,000
Direct labor cost	$102,960
Applied Factory overhead cost	$51,480

Required:
Calculate the Following using the weighted average method:

Equivalent Units of Production for Direct materials	(Do not enter commas in answer for example 5,000 should be entered as 5000)
Equivalent Units of Production for Conversion Costs	(Do not enter commas in answer for example 5,000 should be entered as 5000)
Cost per Equivalent Unit – Direct Materials	(Round to 2 decimal places)
Cost per Equivalent Unit – Conversion Costs	(Round to 2 decimal places)
Total value of units transferred out	(Round to the nearest whole dollar and do not enter dollar signs or commas in answer for example $5,000should be entered as 5000)
Total value of Ending Inventory	(Round to the nearest whole dollar and do not enter dollar signs or commas in answer for example $5,000should be entered as 5000)

Answer 1

Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv	Total
Work in process inventory - beginning	1,000.00	100%	1,000.00	1,000.00	100%	1,000.00
Units started and completed = 4,500 - 1,000	3,500.00	100%	3,500.00	3,500.00	100%	3,500.00
Work in process inventory Ending	1,500.00	100%	1,500.00	1,500.00	60%	900.00
1 and 2) Equivalent Units			6,000.00			5,400.00
Opening WIP Costs			3,000.00			18,360.00	21,360.00
Current Month Costs			45,000.00			154,440.00	199,440.00
Total costs			48,000.00			172,800.00	220,800.00
3 and 4) Cost per Equivalent units			8.00			32.00
Units completed and transferred out			4,500.00			4,500.00
5) Total value of units transferred out			36,000.00			144,000.00	180,000.00
Ending WIP Units			1,500.00			900.00
6) Total value of Ending Inventory			12,000.00			28,800.00	40,800.00