Question

	Units	Percentage Complete	Cost
Beginning WIP Inventory - August	22,000
Direct Materials		75%	$         4,200
Conversion Cost		70%	$         2,450
Units Started in August	12,000
Costs incurred in August
Direct Materials			$       17,000
Conversion Cost			$       16,800
Ending WIP Inventory	6,000
Direct Materials		80%
Conversion Cost		60%
Use weighted-average process costing to compute equivalent units & prepare a PRODUCTION COST REPORT Using the format below

		% Completed		Equivalent Units
Flow of Units	Physical Units	DM	Conv	DM	Conv
Units to Account for
Beginning WIP
Units Started	1200
Total Units to Account for
Units Accounted For
Completed & TO
Ending WIP
Equivalent Units
Flow of Costs
Costs to be accounted for
Costs in Beginning WIP
Current Period Costs
Total Costs to be Accounted for
Equivalent Units
Costs per EU
Cost Accounted For:
Units Transferred Out
Ending WIP
Total Costs Accounted For

Answer 1

		Units
Reconciliation of Units
A	Opening WIP	22,000
B	Introduced	12,000
C=A+B	TOTAL	34,000
D	Transferred	28,000
E=C-D	Closing WIP	6,000

Statement of Equivalent Units
		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	28,000	100%	28,000	100%	28,000
Closing WIP	6,000	80%	4,800	60%	3,600
Total	34,000	Total	32,800	Total	31,600

Cost per Equivalent Units
COST	Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost	$             4,200.00	$                2,450.00	$               6,650.00
Cost incurred during period	$          17,000.00	$              16,800.00	$            33,800.00
Total Cost to be accounted for	$          21,200.00	$              19,250.00	$            40,450.00
Total Equivalent Units	32,800	31,600
Cost per Equivalent Units	$                0.6463	$                    0.6092

Statement of cost
	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 0.65	4,800	$                3,102.44	28,000	$      18,097.56
Conversion Cost	$    0.61	3,600	$                2,193.04	28,000	$      17,056.96
TOTAL	$   40,450.00	TOTAL	$                5,295.48	TOTAL	$      35,154.52

Cost to be accounted for
Beginning Work In Progress:
Material	$               4,200.00
Conversion Cost	$               2,450.00	$             6,650.00
Cost incurred during period:
Material	$             17,000.00
Conversion Cost	$             16,800.00	$          33,800.00
Total Cost to be accounted for				$            40,450.00

Cost accounted for
Cost of Units transferred	Equivalent Units	Cost per Equivalent Units	Cost accounted for
Material	28,000	$                     0.65	$              18,097.56
Conversion Cost	28,000	$                     0.61	$              17,056.96
				$            35,154.52
Cost of ending WIP	Equivalent Units	Cost per Equivalent Units	Cost accounted for
Material	4,800	$                     0.65	$                3,102.44
Conversion Cost	3,600	$                     0.61	$                2,193.04
				$               5,295.48
Total Cost accounted for				$            40,450.00

Complete Answer in format provided

		% Complete		Equivalent Units
Flow of Units	Physical Units	DM	Conv	DM	Conv
Units To Account for
Beginning Inventory	22,000
Units Started	12,000
Total Units to Account For	34,000
Units Accounted for
Completed and transferred out	6,000	80%	60%	4800	3600
Ending WIP	28,000	100%	100%	28000	28000
Equivalent Units	34,000			32,800	31,600
Flow of Costs
Costs to be Accounted for
Cost in beginning Inventory				$     4,200.00	$     2,450.00
Current Period Cost				$   17,000.00	$ 16,800.00
Total Cost to be Accounted for				$   21,200.00	$ 19,250.00
Equivalent Units				32,800	31,600
Cost per EU				$              0.65	$             0.61
Cost Accounted for
Units Transferred out	28000			$   18,097.56	$ 17,056.96
Ending WIP	6000			$     3,102.44	$     2,193.04
Total Cost Accounted for				$   21,200.00	$ 19,250.00