Question

Use the following information for the Exercises below. [The following information applies to the questions displayed below.] During April, the first production department of a process manufacturing system completed its work on 390,000 units of a product and transferred them to the next department. Of these transferred units, 78,000 were in process in the production department at the beginning of April and 312,000 were started and completed in April. April's beginning inventory units were 75% complete with respect to materials and 25% complete with respect to conversion. At the end of April, 100,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion. Exercise 03-9 Weighted average: Costs assigned to output and inventories LO C2 The production department had $1,296,225 of direct materials and $929,160 of conversion costs charged to it during April. Also, its April beginning inventory of $268,115 consists of $231,275 of direct materials cost and $36,840 of conversion costs.

1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)

2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)

3. Using the weighted-average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Unit Reconciliation
Units to account for:
Beginning Work in process	78000
Started into production	412000
Total Units to account for	490000
Total Units accounted for:
Units completed and transferred to next depart	390000
Ending Work in process	100000
Total Units accounted for	490000
Equivalent Units of Production (EUP)-Weighted Average Method
	Units	% Materials	EUP-Materials	% Conversion	EUP-Conversion
Units transferred out	390000	100%	390000	100%	390000
Ending Work in process	100000	80%	80000	30%	30000
Equivalent Units of Production	490000		470000		420000
Cost per EUP	Materials	Conversion	Total
Cost of beginning Work in process	$          231,275	$            36,840	$           268,115
Total Costs added during period	$       1,296,225	$          929,160	$        2,225,385
Total Cost to be accounted for	$      1,527,500	$          966,000	$       2,493,500
÷ Equivalent units	470000	420000
Cost per equivalent unit of production	$3.25	$2.30	$5.55
Cost Assignment and Reconciliation
Costs transferred out	EUP	Cost per EUP	Total Cost
Direct Materials	390000	$3.25	$1,267,500
Conversion	390000	$2.30	$897,000
Total Costs transferred to next department			$2,164,500
Cost of Ending Work in proces	EUP	Cost per EUP	Total Cost
Direct Materials	80000	$3.25	$260,000
Conversion	30000	$2.30	$69,000
Total ending Work in proces			$329,000
Total costs accounted for				$2,493,500

Feel free to ask any clarification, if required. Kindly provide feedback by thumbs up, if satisfied. It will be highly appreciated. Thank you.