In: Accounting
Required information
Use the following information for the Exercises below.
[The following information applies to the questions
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During April, the production department of a process manufacturing
system completed a number of units of a product and transferred
them to finished goods. Of these transferred units, 63,000 were in
process in the production department at the beginning of April and
252,000 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, 85,000
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 3-9 Weighted average: Costs assigned to output and inventories LO C2
The production department had $825,945 of direct materials and
$707,955 of conversion costs charged to it during April. Also, its
beginning inventory of $155,675 consists of $131,555 of direct
materials cost and $24,120 of conversion costs.
1&2. Using the weighted-average method,
compute the direct materials cost and the conversion cost per
equivalent unit and assign April's costs to the department’s
output. (Round "Cost per EUP" to 2 decimal
places.)
|
Equivalent Units of Production (EUP)- Weighted Average Method | |||||
Units | % Materials | EUP—Materials | % Conversion | EUP—Conversion | |
Units completed and transferred out | 315000 | 100% | 315000 | 100% | 315000 |
Units of ending goods in process | 85000 | 80% | 68000 | 30% | 25500 |
Equivalent units of production | 383000 | 340500 | |||
Cost per Equivalent Unit of Production | Materials | Conversion | |||
Cost of beginning goods in process | 131555 | 24120 | |||
Costs incurred this period | 825945 | 707955 | |||
Total costs | Costs | 957500 | Costs | 732075 | |
÷ Equivalent units of production | EUP | 383000 | EUP | 340500 | |
Cost per equivalent unit of production (rounded to 2 decimals) | 2.5 | 2.15 | |||
Total Costs to Account for: | |||||
Cost of beginning goods in process | 155675 | ||||
Costs incurred this period | 1533900 | ||||
Total costs to account for: | 1689575 | ||||
Total costs accounted for | 1689575 | ||||
Difference due to rounding cost/unit | 0 | ||||
Cost Assignment and Reconciliation | |||||
Cost of units transferred out | EUP | Cost per EUP | Total cost | ||
Direct materials | 315000 | 2.5 | 787500 | ||
Conversion | 315000 | 2.15 | 677250 | ||
Total costs transferred out | 1464750 | ||||
Costs of ending work in process | EUP | Cost per EUP | Total cost | ||
Direct materials | 68000 | 2.5 | 170000 | ||
Conversion | 25500 | 2.15 | 54825 | ||
Total cost of ending work in process | 224825 | ||||
Total costs accounted for | 1689575 |