Question

BMG Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Work in process, beginning:

Units in process ........................................................... 200

Stage of completion with respect to materials ............ 60%

Stage of completion with respect to conversion.......... 20%

Costs in the beginning inventory:

Materials cost ........................................................... $756

Conversion cost ........................................................ $1,508

Units started into production during the month .............. 18,000

Units completed and transferred out .............................. 17,700

Costs added to production during the month:

Materials cost .............................................................. $116,569

Conversion cost ........................................................... $675,432

Work in process, ending:

Units in process ........................................................... 500

Stage of completion with respect to materials ............ 70%

Stage of completion with respect to conversion.......... 80%

Required:

Prepare a production report for the department using the weighted-average method.

BMG Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Work in process, beginning:

Units in process ........................................................... 200

Stage of completion with respect to materials ............ 60%

Stage of completion with respect to conversion.......... 20%

Costs in the beginning inventory:

Materials cost ........................................................... $756

Conversion cost ........................................................ $1,508

Units started into production during the month .............. 18,000

Units completed and transferred out .............................. 17,700

Costs added to production during the month:

Materials cost .............................................................. $116,569

Conversion cost ........................................................... $675,432

Work in process, ending:

Units in process ........................................................... 500

Stage of completion with respect to materials ............ 70%

Stage of completion with respect to conversion.......... 80%

Required:

Prepare a production report for the department using the weighted-average method.

Answer 1

Caculation of Equivalent Units

Equivalent Units of Production - Weighted Average
	Units	% Materials	EUP Materials	% Conversion	EUP Conversion
Completed and Transferred	17700	100%	17700	100%	17700
Ending WIP	500	70%	350	80%	400
Total	18200		18050		18100

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