Question

Carpenter Manufacturing Corporation produces highly specialized technical equipment, which is manufactured in the Product Construction department and tested in the Product Evaluation department. Carpenter has 1 Direct Cost Category (direct materials); 1 Indirect Cost Category (conversion costs); and wishes to compare the Weighted Average versus the FIFO methods of Process Costing.

Data for the Product Construction department for March 2012 is as follows:

Work In Process, March 1: Physical Units 5,858; Direct Materials (96% complete) $702,369; Conversion Costs (52% complete) $214,069

Work added to Production during March: Physical Units 13,925; Direct Materials $2,158,989; Conversion Costs $1,252,622

Work In Process, March 31: Physical Units 1,165; Direct Materials (79% complete) $ ? ; Conversion Costs (36% complete) $ ?

Compute the Total Cost of the Ending Work In Process Inventory (Weighted Average) in the Product Construction department.

Answer 1

Beginning work in process			5,858	Completed & transferred			18,618
Started during the year			13,925	ending work in process			1,165
units to be accounted			19,783	units accounted for			19,783
Equivalent units				%	EUP-	%	EUP-
			units	materials	Materials	CC	CC
Completed & transferred			18,618	100%	18,618	100%	18,618
ending work in process			1,165	79%	920.35	36%	419.4
					19538.35		19037.40
equivalent units
			Materials	CC
beginning work in process			702,369	214,069	916,438
cost added during the year			2,158,989	1,252,622	3,411,611
total cost			2,861,358	1,466,691	4,328,049
Equivalent units			19538.35	19037.40
cost per unit			146.4483	77.04261
cost of ending work in process inventory
materials	920.35	*	146.4483	=	134783.7
CC	419.4	*	77.04261	=	32311.67
total cost of ending work in process inventory					167095.4	answer