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Calculate the cost per equivalent unit of material and conversion cost for January - using the...

Calculate the cost per equivalent unit of material and conversion cost for January - using the Weighted Average Approach
Units Materials Conversion
Work in process January 1 2,500 50% 35%
Work in process January 31 45% 25%
Materials cost in work in process January 1 $25,000
Conversion costs in work in process January 1 $10,000
Units started in production 12,000
Units transferred to the next department 8,000
Materials cost added during January $20,000
Conversion costs added during January $7,500
Complete the grey cells that required information.
Beginning Inventory
Units Started this Period
Units to be accounted for
Direct Materials Conversion Costs
Units in process January
Units completed & transferred out
Ending Inventory
Units accounted for
Direct Materials Conversion Costs
Beginning Inventory
Current Costs
Total Costs
Equivalent Units
Materials Conversion
Units completed and transferred out
Work in process, January 31:
Equivalent units of production in work in process
Total Cost Materials Conversion
Cost to be accounted for:
Work in process, January 1
Costs added in January
   Total Cost
Equivalent units
Cost per equivalent unit

Solutions

Expert Solution

1. Calculation of equivalent units of production for materials and conversion cost for January
Production Cost Report
For the Month Ended January 31
UNITS Equivalent Units
Physical Units % complete Direct Materials % complete Conversion
Units to be accounted for:
Beginning Inventory 2500
Units Started this Period   12000
Units to be accounted for 14500
Units accounted for:
Units completed & transferred out   8000 100% 8000 100% 8000
Ending Inventory (14500-8000) 6500 45% 2925 25% 1625
Total units to be assigned costs 14500 10925 9625
2. Computation of cost per equivalent unit for materials and conversion cost for January
COSTS Costs
Total Materials Conversion
Unit Costs
Work in process, January 1 $            35,000 $            25,000 $             10,000
Costs added in January $            27,500 $            20,000 $               7,500
   Total Cost $            62,500 $            45,000 $             17,500
÷   ÷  
Equivalent units 10925 9625
Cost per equivalent unit $5.94 $4.12 $1.82

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ekkarill92 answered 1 year ago
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