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, 38,000 were in process in the production department at the beginning of April and 270,000 were started and completed in April. April's beginning inventory units were 40% complete with respect to materials and 60% complete with respect to labor. At the end of April, 69,000 additional units were in process in the production department and were 60% complete with respect to materials and 50% complete with respect to labor. The production department had $800,000 of direct materials and $600,000 of direct labor cost charged to it during April. Also, its beginning inventory included $90,000 of direct materials cost and $20,000 of direct labor. 1. Using the weighted average method, compute the direct materials cost and the direct labor cost per equivalent unit for the department. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your answers to 2 decimal places. Omit the "$" sign in your response.) Direct Materials EUP Direct Labor EUP Cost per equivalent unit $ $ 2. Using the weighted average method, assign April's costs to the department's output-specifically, its units transferred to finished goods and its ending goods in process inventory. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.) A Total costs transferred out Total costs of ending goods in process Total cost

Answer 1

Part 1

	Direct materials		Direct labor
Cost per equivalent unit of production	$2.55	EUP	$1.81	Per EUP

	Units in beginning inventory	38000
	Units started and completed	270000
	Total units transferred to finished goods	308000

Equivalent units of production - weighted average
	Units	% Materials	EUP- Materials	% Labor	EUP- Labor
Units completed and transferred out	308,000	100%	308,000	100%	308,000
Units of ending goods in process	69,000	60%	41400	50%	34500
Equivalent units of production	377,000		349,400		342,500

Cost per Equivalent Unit of Production	Materials		Labor
Costs of beginning inventory	90000		20000
Costs incurred this period	800000		600000
Total costs	890000		620000
÷Equivalent units of production	349,400		342,500
Cost per equivalent unit of production	$2.55		$1.81

Part 2

Total cost transferred out	$1342880
Total costs of ending goods in process	$168015
Total cost	$1510895

Total cost transferred out = (308000*2.55)+(308000*1.81) = 785400+557480 = $1342880

Total costs of ending goods in process = (41400*2.55)+(34500*1.81) = 105570+62445 =$168015