Question

Fever Corporation uses the weighted average method of process costing. The company has the following information for the period:

Beginning Work in Process: 2000 units 100% complete for materials, 75% complete for conversion costs

Units started during the period: 10,000

Ending work in process: 4,000 units 75% complete for materials, 50% complete for conversion costs

Costs for the period:

Beginning work in process: Materials: $1,100 Conversion Costs: $2,000

Costs added during the period: Materials: $11,000 Conversion Costs: $30,000

  

A) What are the total units to account for?  

B) How many units were completed during the month?  

C) What are the equivalent units for materials?  

D) What are the equivalent units for conversion?  

E) What is the cost per equivalent unit for materials? $

F) What is the cost per equivalent unit for conversion? $

G) What is the cost assigned to units completed and transferred out? $

H) What is the cost assigned to units in ending work in process? $

I) What are the total costs to account for? $

Answer 1

Solution A:

Total units to account for = Units in beginning WIP + Unit started = 2000 + 10000 = 12000 units

Solution B:

Units completed during the month = begining units + Units started - Units in ending WIP

= 2000 + 10000 - 4000 = 8000 units

Solution C and D:

Computation of Equivalent unit of Production - Weighted Average
Particulars	Physical Units	Material	Conversion
Units to account for:
Beginning WIP	2000
Add: Unit started into production	10000
Total physical units to account for	12000
Units Accounted for:
Unit completed & Transferred out	8000	8000	8000
Closing WIP:	4000
Material (75%)		3000
Conversion (50%)			2000
Equivalent units of production	12000	11000	10000

Solution E and F:

Computation of Cost per equivalent unit of Production - Weighted Average
Particulars	Material	Conversion
Opening WIP	$1,100.00	$2,000.00
Cost Added during period	$11,000.00	$30,000.00
Total cost to be accounted for	$12,100.00	$32,000.00
Equivalent units of production	11000	10000
Cost per Equivalent unit	$1.10	$3.20

Solution G and H:

Computation of Cost of ending WIP and units completed & transferred out
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	3000	2000
Cost per equivalent unit	$1.10	$3.20
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$3,300	$6,400	$9,700
Units completed and transferred	8000	8000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$8,800	$25,600	$34,400

Solution I:

Total cost to account for = Cost of beginning WIP + Cost added durint the period

= ($1,100 + $2,000) + ($11,000 + $30,000) = $44,100