Question

Edenton Boat Company manufactures small pleasure boats on an assembly-line basis. The units are started in the Department A. On July 1 of this year, the Work-in-Process inventory of the department A consisted of 200 units 100% complete as to materials and 40% complete as to conversion. During the month, 400 units were started and 500 units were completed and transferred out. The Work-in-Process on July 31 was 100% complete as to materials and 30% complete as to conversion. Costs in process at the beginning of the period amounted to $600,000 for materials and $160,000 for conversion. Costs added during the period were materials costs of $1,802,700 and conversion costs of $905,512. Required: Fill in the production cost report using the weighted-average method. Physical Units Percentage Completion Weighted Average Equivalent Units Materials Conversion Beginning WIP Materials % Conversion % Units started     Total to account for Units Finished Ending WIP Materials % Conversion %     Total accounted for Total Equivalent Units   600    530 DETERMINE TOTAL COSTS Materials Conversion Total Beginning WIP 600,000 160,000 760,000 Current Costs 905,512   TOTAL 2,402,700 3,468,212 Cost per EU COST ASSIGNED-WEIGHTED AVERAGE Units Completed and Transferred Out Units in Ending WIP Inventory Finished Goods units $   Ending WIP units Materials $ Conversion                   - TOTAL MANUFACTURING COSTS ACCOUNTED FOR    $3,007,450      $460,762

Answer 1

Total costs to account for:
Costs of beginning goods in process	760,000
Costs incurred this period	2,708,212
Total costs to account for:	3,468,212
Total costs accounted for	3,468,212
Difference due to rounding cost/unit	-
Unit reconciliation:
Units to account for:
Beginning goods in process inventory - units	200
Units started this period	400
Total units to account for	600
Total units accounted for:
Units completed and transferred out	500
Ending goods in process - units	100
Total units accounted for	600
Equivalent units of production (EUP)- weighted average method
	Units	% Materials	EUP- Materials	% Conversion	EUP-Conversion
Units completed and transferred out	500	100%	500	100%	500
Ending goods in process - units	100	100%	100	30%	30
Total units	600		600		530
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning goods in process			600,000		160,000
Costs incurred this period			1,802,700		905,512
Total costs		Costs	2,402,700	Costs	1,065,512
÷ Equivalent units of production		EUP	600	EUP	530
Cost per equivalent unit of production (rounded to 2 decimals)	4,004.50		2,010.40
Total costs accounted for:
Cost of units transferred out:	EUP	Cost per EUP	Total cost
Direct materials	500	4,004.50	2,002,250
Conversion	500	2,010.40	1,005,200
Total costs transferred out				3,007,450
Costs of ending goods in process	EUP	Cost per EUP	Total cost
Direct materials	100	4,004.50	400,450
Conversion	30	2,010.40	60,312
Total cost of ending goods in process				460,762
Total costs accounted for				3,468,212