Question

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below) During April, the first production department of a process manufacturing system completed its work on 350,000 units of a product and transferred them to the next department of these transferred units, 70,000 were in process in the production department at the beginning of April and 280,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 92.000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion. Exercise 16-9 Weighted average: Costs assigned to output and inventories LO C2 The production department had $1,062,050 of direct materials and $750,904 of conversion costs charged to it during April. Also, its April beginning inventory of $210,036 consists of $158,320 of direct materials cost and $51,716 of conversion costs. 1. Compute the direct materials cost per equivalent unit for April (Round "Cost per EUP" to 2 decimal places.) 2. Compute the conversion cost per equivalent unit for April (Round "Cost per EUP" to 2 decimal places.) 3. Using the weighted average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.) Required 1. and 2. Equivalent Units of Production (EUP). Weighted Average Method Units % Materials EUP-Materials % Conversion EUP-Conversion Equivalent units of production Prev 1 of 1

Answer 1

Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	350000	100%	350000	100%	350000
Ending work in process	92000	85%	78200	35%	32200
Equivalent units of production	442000		428200		382200
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			158320		51716
Costs incurred this period			1062050		750904
Total costs		Costs	1220370	Costs	802620
÷ Equivalent units of production		EUP	428200	EUP	382200
Cost per equivalent unit of production			2.85		2.10
Total costs to account for:
Direct materials-Prior period	158320
Conversion-Prior period	51716
Direct materials-Current period	1062050
Conversion-Current period	750904
Total costs to account for	2022990
Total costs accounted for	2022990
Difference due to rounding cost/unit	0
Cost Assignment and Reconciliation
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	350000	2.85	997500
Conversion	350000	2.10	735000
Total cost transferred out				1732500
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	78200	2.85	222870
Conversion	32200	2.10	67620
Total Cost of ending work in Process				290490
Total cost accounted for				2022990