Question

The Lakeside Company uses a weighted-average process costing system. The following data are available:

Beginning inventory		-0-
Units started in production		22,200
Units finished during the period		17,000
Units in process at the end of the period (complete as to materials, ¼ complete as to labor and overhead)		5,200
Cost of materials used	$	48,530
Labor and overhead costs	$	50,600

Total cost of the 17,000 units finished is:

Multiple Choice

• $90,604.

• $99,164.

• $84,168.

• $88,534.

Answer 1

Correct answer----------$84,168

Working

Reconciliation of Units
A	Beginning WIP	-
B	Introduced	22,200
C=A+B	TOTAL	22,200
D	Transferred out	17,000
E=C-D	Ending WIP	5,200

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	17,000			100%	17,000	100%	17,000
Ending WIP	5,200			100%	5,200	25%	1,300
Total	22,200			Total	22,200	Total	18,300

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost				$ 0
Cost incurred during period		$ 48,530	$ 50,600	$ 99,130
Total Cost to be accounted for		$ 48,530	$ 50,600	$ 99,130
Total Equivalent Units		22,200	18,300
Cost per Equivalent Units		$                   2.19	$                     2.77	$                4.95

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 2.19	5,200	$          11,367.39	17,000	$          37,162.61
Conversion cost	$ 2.77	1,300	$             3,594.54	17,000	$          47,005.46
TOTAL	$ 99,130	TOTAL	$ 14,962	TOTAL	$ 84,168