Question

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 71,000 were in process in the production department at the beginning of April and 284,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 93,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion.

The production department had $1,106,991 of direct materials and $800,823 of conversion costs charged to it during April. Also, its beginning inventory of $207,646 consists of $165,239 of direct materials cost and $42,407 of conversion costs.

1&2. Using the weighted-average method, compute the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output. (Round "Cost per EUP" to 2 decimal places.)

Equivalent Units of Production (EUP)- Weighted Average Method Units % Materials EUP—Materials % Conversion EUP—Conversion Equivalent units of production Cost per Equivalent Unit of Production Materials Conversion Total costs Costs Costs ÷ Equivalent units of production EUP EUP Cost per equivalent unit of production (rounded to 2 decimals) Total Costs to Account for: Total costs to account for: Total costs accounted for Difference due to rounding cost/unit Cost Assignment and Reconciliation Cost of units transferred out EUP Cost per EUP Total cost Direct materials Conversion Total costs transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials Conversion Total cost of ending work in process Total costs accounted for

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units					71,000
Add: Units Started in Process					306,000
Total Units to account for:					377,000
UNITS TO BE ACCOUNTED FOR:
Units started and completed					284,000
Ending Work in Process					93,000
Total Units to be accounted for:					377,000
Equivalent Units:
			UNITS	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units started and completed			284000	100%	284,000	100%	284,000
Ending Work in Process			93000	90%	83,700	40%	37,200
Total Equivalent units			377000		367,700		321,200
TOTAL COST TO ACCOUNT FOR:
				Material		Conversion
Beginning work in Process				165,239		42,407
Cost Added during May				1,106,991		800,823
Total Cost to account for:				1,272,230		843,230
Equivalent Units				367,700		321,200
Cost per Equivalent unit				3.46		2.625
TOTAL COST TO ACCOUNT FOR:
Material c cost of Beginning WIP				165239
Conversion cost of Beginning WIP				42407
Material cost in current pereiod				1106991
Conversion cost in current period				800823
Total Cost to accout for				2115460
Total Cost accounted fr				2115392
Rounding differnce				68
TOTAL COST ACCOUNTED FOR:
Units started and Transferred out (284000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				284,000	3.46	982640
Conversion Cost				284,000	2.625	745500
Total Cost of Units completed and transferred out:						1728140
Ending Work in process (93,000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				83,700	3.46	289602
Conversison Cost				37,200	2.625	97650
Total cost of Ending Work in process:						387,252
Total cost accounted for:						2,115,392