Question

Daosta Inc. uses the weighted average method in its process costing system. The following data concern

the operations of the company's first processing department for a recent month.

Work in process, beginning:

Units in process 900

Percent complete with respect to materials 40 %

Percent complete with respect to conversion costs 20 %

Costs in the beginning inventory:

Materials cost $ 530

Conversion cost $ 2108

Units started into production during the month 16,000

Units completed and transferred out 16,000

Costs added to production during the month:

Materials cost $ 32,180

Conversion cost $ 416,512

Work in process, ending:

Units in process 900

Percent complete with respect to materials 50 %

Percent complete with respect to conversion costs 70 %

Required:

Using the Weighted Average Method:

Equivalent Units of Production for Direct materials

Equivalent Units of Production for Conversion Costs

Cost per Equivalent Unit – Direct Materials (Round to 4 decimal places)

Cost per Equivalent Unit – Conversion Costs (Round to 4 decimal places)

Total value of Ending Work in Process

Total value of units transferred out

Answer 1

Working:

Quantities	Physical Units	Equivalent Units
		Direct Materials	Conversion Costs
Units to be accounted for:
Work in process, beginning	900
Started into production	16000
Total units	16900
Units accounted for:
Completed and transferred out	16000	16000	16000
Work in process, ending	900	450	630
Total units	16900	16450	16630
Costs	Direct Materials	Conversion Costs	Total
Work in process, beginning	530	2108	2638
Costs added to production during the month	32180	416512	448692
Total Costs $	32710	418620	451330
Equivalent units	16450	16630
Cost per equivalent unit $	1.9884	25.1726	27.1610
Assignment of Costs	Direct Materials	Conversion Costs	Total
Units completed and transferred out	16000	16000
x Cost per equivalent unit $	1.9884	25.1726
Total cost of units completed and transferred out	31814	402762	434576
Units in ending work in process	450	630
x Cost per equivalent unit $	1.9884	25.1726
Total cost of ending work in process	895	15859	16754
Total Costs $			451330

Equivalent Units of Production for Direct Materials: 16450

Equivalent Units of Production for Conversion Costs: 16630

Cost per Equivalent Unit - Direct Materials: $1.9884

Cost per Equivalent Unit - Conversion Costs: $25.1726

Total value of Ending Work in Process: $16754

Total value of units transferred out: $434576