Question

Materials costs of $408000 and conversion costs of $360510 were charged to a processing department in the month of September. Materials are added at the beginning of the process; conversion costs are incurred uniformly throughout the process. There were no units in beginning Work in Process, 102000 units were started into production in September, and there were 8300 units in ending Work in Process that were 45% complete at the end of September. What was the total amount of manufacturing costs assigned to the 8300 units in the ending Work in Process if the weighted-average method is used?

$33200

$45650

$28760

$47020

Answer 1

Correct answer----------$47,020

Working

Reconciliation of Units
A	Opening WIP	-
B	Introduced	102,000
C=A+B	TOTAL	102,000
D	Transferred	93,700
E=C-D	Closing WIP	8,300

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	93,700			100%	93,700	100%	93,700
Closing WIP	8,300			100%	8,300	45%	3,735
Total	102,000			Total	102,000	Total	97,435

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 0	$ 0	$ 0
Cost incurred during period		$ 408,000	$ 360,510	$ 768,510
Total Cost to be accounted for		$ 408,000	$ 360,510	$ 768,510
Total Equivalent Units		102,000	97,435
Cost per Equivalent Units		$                   4.00	$                     3.70

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP
		Units	Cost Allocated
Material	$ 4.00	8,300	$          33,200.00
Conversion cost	$ 3.70	3,735	$          13,819.52
TOTAL	$ 768,510	TOTAL	$ 47,020