Question

Natraj Company uses the weighted-average method in its process costing system. The Curing Department of Harmon Company reported the following information for the month of November.

	Units	Percentage Complete With Respect to Conversion
Work in process, November 1	10,000	80%
Units started	28,000
Completed and transferred out	30,000
Work in process, November 30	8,000	30%
Cost of November:	Materials	Conversion
Work in process, November 1	$34,500	$48,600
Added during the month	$146,000	$194,400

All materials are added at the beginning of the process.

Compute the following items using the weighted-average method:

• The equivalent units of production for materials.
• The cost per equivalent unit for conversion.
• The total cost assigned to units transferred out of the curing department during November.
• The cost assigned to work-in-process inventory as of November 30.

Answer 1

Solution 1:

Harmon Company Curing Department Computatio of Equivalent units
Particulars	Physical Units	Equivalent units
		Material	Conversion
Work in Process, beginning	10000
Started during the current period	28000
Total units to account for	38000
Units accounted for:
Unit completed & Transferred out	30000	30000	30000
Closing WIP:	8000
Material (100%)		8000
Conversion (30%)			2400
Equivalent units of production	38000	38000	32400

Solution 2:

Harmon Company Curing Department Computation of Cost per equivalent unit of Production
Particulars	Material	Conversion
Opening WIP	$34,500.00	$48,600.00
Cost Added during Period	$146,000.00	$194,400.00
Total cost to be accounted for	$180,500.00	$243,000.00
Equivalent units of production	38000	32400
Cost per Equivalent unit	$4.75	$7.50

Solution 3 & 4:

Harmon Company Curing Department Computation of Cost of ending WIP and units completed & transferred out
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	8000	2400
Cost per equivalent unit	$4.75	$7.50
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$38,000	$18,000	$56,000
Units completed and transferred	30000	30000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$142,500	$225,000	$367,500