Question

Alpha Company Had The Following Information For FY 2017: Work In Process - 1/1/17 100,000 Units ... Question: Alpha Company had the following information for FY 2017: Work in Process - 1/1/17 100,000 u... Alpha Company had the following information for FY 2017: Work in Process - 1/1/17 100,000 units Units Started into Production 575,000 units Work in Process - 12/31/17 75,000 units Direct Material put into Production $575,000 Direct Labor put into Production $843,750 The beginning work in process was 100% complete as to direct materials and 75% complete as to conversion costs. The ending work in process was 100% complete as to direct materials and 50% complete as to conversion costs. The beginning work in process consisted of: Direct Material $100,000 Conversion Costs $112,500 Alpha company uses the weight-average method.

Use the information to determine for FY 2017. Use this information to prepare the cost allocation section of the Cost of Production Report for FY 2017.

Answer 1

Calculation of equivalent units of production using weight-average method.
	Physical Units	% Complete with respect to Direct Materials	Equivalent units for Direct Materials cost	% Complete with respect to Conversion	Equivalent units for Conversion cost
Units completed and transferred	600000	100%	600000	100%	600000
Ending work in process	75000	100%	75000	50%	37500
Equivalent Units of production			675000		637500
Calculation of cost per equivalent unit
			Direct Material		Conversion
Beginning work in process			$100,000.00		$112,500.00
Cost added during the period			$575,000.00		$843,750.00
Total Cost to account for			$675,000.00		$956,250.00
/ Equivalent Units of Production			675000		637500
Cost per equivalent unit			$1.00		$1.50
Calculation of cost allocation section
Cost of units completed and transferred
- Direct Material cost [600000 units * $1]		$600,000.00
- Direct Labour cost [600000 units * $1.50]		$900,000.00
Total cost of units completed and transferred		$1,500,000.00
Cost of units in ending work in process
- Direct Material cost [75000 units * $1]		$75,000.00
- Direct Labour cost [37500 units * $1.50]		$56,250.00
Total cost of units in ending work in process		$131,250.00