Question

In: Accounting

progressive company produces one product in a process-costing system involving several departments. the first department's costs...

progressive company produces one product in a process-costing system involving several departments. the first department's costs and output for the month of april are asfollows:units:

beginning wip *15,000units

started during april 140,000 units

completed during april 120,000

units sending wip **35,000units

costs:

beginning wip:direct materials$25,750

conversion costs 3,225 $28,975

direct materials added in current month 168,000

conversion costs in current month 186,000

total costs to account for$382,975

* 100% completed for materials, 40% completed for conversion costs*

* 100% completed for materials, 30% completed for conversion costs

required:compute the cost of work completed and the cost of the ending work-in-process inventory using the weighted-average method.

Expert Solution

Solution:

Computation of Equivalent unit of Production - Weighted Average (First Department)
Particulars	Physical Units	Material	Conversion
Unit completed & Transferred out	120000	120000	120000
Closing WIP:	35000
Material (100%)		35000
Conversion (30%)			10500

Equivalent units of production	155000	155000	130500

Computation of Cost per equivalent unit of Production - Weighted Average (First Department)
Particulars	Material	Conversion
Opening WIP	$25,750.00	$3,225.00
Cost Added during January	$168,000.00	$186,000.00

Total cost to be accounted for	$193,750.00	$189,225.00
Equivalent units of production	155000	130500
Cost per Equivalent unit	$1.25	$1.45

Computation of Cost of ending WIP and units completed & transferred out - Weighted Average (First Department)
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	35000	10500
Cost per equivalent unit	$1.25	$1.45
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$43,750	$15,225	$58,975
Units completed and transferred	120000	120000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$150,000	$174,000	$324,000

ekkarill92 answered 1 year ago

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