Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.

Weighted-average method, equivalent units. Consider the following data for the Assembly Division of Fenton Watches, Inc.: The Assembly Division uses the weighted-average method of process costing.

Physical Units (Watches) 80 Direct Materials $ 493,360 Conversion Costs $ 91,040 Beginning work in process (May 1)

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Expert Solution

Weighted-average method, equivalent units.

Under the weighted-average method, equivalent units are calculated as the equivalent units of work done to date. Solution Exhibit 17-19 shows equivalent units of work done to date for the Assembly Division of Fenton Watches, Inc., for direct materials and conversion costs.

SOLUTION EXHIBIT 17-19

Steps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units;

Weighted-Average Method of Process Costing, Assembly Division of Fenton Watches, Inc., for May 2009.

*Degree of completion in this department: direct materials, 60%; conversion costs, 30%.

Raffay answered 1 year ago

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