Question

[The following information applies to the questions displayed below.]

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, 62,000 were in process in the production department at the beginning of April and 248,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 84,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion.

1. Compute the number of units transferred to finished goods.
2. Compute the number of equivalent units with respect to both materials used and conversion used in the production department for April using the weighted-average method.

Compute the number of units transferred to finished goods.

	Units transferred out

Compute the number of equivalent units with respect to both materials used and conversion used in the production department for April using the weighted-average method.

	Equivalent Units of Production - Weighted Average Units % Materials EUP—Materials % Conversion EUP—Conversion Equivalent units of production

The production department had $817,858 of direct materials and $689,000 of conversion costs charged to it during April. Also, its beginning inventory of $159,422 consists of $126,862 of direct materials cost and $32,560 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) 0 0 Total Costs to Account for: Total costs to account for: $0.00 Total costs accounted for Difference due to rounding cost/unit $0.00 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 $0.00 $0.00 Conversion $0.00 0.00 Total cost of ending work in process Total costs accounted for

Answer 1

1
Units transferred out = 62000+248000= 310000
2
Equivalent Units of Production - Weighted Average
	Units	% Materials	EUP—Materials	% Conversion	EUP—Conversion
Units completed and transferred out	310000	100%	310000	100%	310000
Units in ending inventory	84000	90%	75600	40%	33600
Equivalent units of production	394000		385600		343600
Cost per Equivalent Unit of Production			Materials		Conversion
Costs of beginning inventory			126862		32560
Costs incurred this period			817858		689000
Total costs		Costs	944720	Costs	721560
÷ Equivalent units of production		EUP	385600	EUP	343600
Cost per equivalent unit of production (rounded to 2 decimals)			2.45		2.1
Total Costs to Account for:
Direct materials - Prior period	126862
Conversion - Prior period	32560
Direct materials - Current period	817858
Conversion - Current period	689000
Total costs to account for:	$1,666,280.00
Total costs accounted for	$1,666,280.00
Difference due to rounding cost/unit	$0.00
Cost Assignment and Reconciliation
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	310000	2.45	759500
Conversion	310000	2.1	651000
Total costs transferred out				1410500
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials	75600	2.45	185220
Conversion	33600	2.1	70560
Total cost of ending work in process				255780
Total costs accounted for				1666280