Question

In: Accounting

Required information Use the following information for the Exercises below. [The following information applies to the...

Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

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
Equivalent units of production
Cost per Equivalent Unit of Production Materials Conversion
Total costs Costs Costs
÷ Equivalent units of production EUP EUP
Cost per equivalent unit of production (rounded to 2 decimals)
Total Costs to Account for:
Total costs to account for:
Total costs accounted for
Difference due to rounding cost/unit
Cost Assignment and Reconciliation
Cost of units transferred out EUP Cost per EUP Total cost
Direct materials
Conversion
Total costs transferred out
Costs of ending work in process EUP Cost per EUP Total cost
Direct materials
Conversion
Total cost of ending work in process
Total costs accounted for

Solutions

Expert Solution

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

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