Question

Use the following information for the Exercises below. [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, 60,000 were in process in the production department at the beginning of April and 240,000 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, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion Exercise 16-9 Weighted average: Costs assigned to output and inventories LO C2 The production department had $850,368 of direct materials and $649,296 of conversion costs charged to it during April. Also, its beginning inventory of $167,066 consists of $118,472 of direct materials cost and $48,594 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 EUP Materials Materials Conversion EUP Conversion Equivalent units of production Cost per Equivalent Unit of Production Materials Conversion Total costs Cost FUP - Equivalent units of production Cost per equivalent unit of production rounded to 2 decimals) Total Costs to Account for

Answer 1

Solution:

R 11 Costs 12 13 14 15 16 17 18 19 20 D E F G H Equivalent units of production (EUP) - Weighted Average method Units %Material EUP-Material % Conversion EUP- Conversion Units Transferred Out (60000+240000) 300000 100% 300000 100% 300000 units of Ending work in process 82000 80% 65600 30% 24600 Equivalent units of production 365600 324600 Cost per EUP Material Conversion Cost of beginning Work in Process $118,472 $48,594 Cost Addrd during the period $850,368 $649,296 Total Costs $968,840 Costs $697,890 /Equivalent units of Production EUP 365600 EUP 324600 Cost per Equivalent unit of Production $2.65 $2.15 Total Costs to Account for: Direct materials - prior period $118,472 Conversion costs - Prior period $48,594 Direct materials - Current period $850,368 Conversion costs - Current period $649,296 Total Cost to account for $1,666,730 Total Cost Accounted for $1,666,730 * Difference due to rounding cost/unit Cost Assignment and Reconciliation Cost of units transferred Out: EUP Cost per EUP Total Cost Direct Material 300000 $2.65 $795,000 Conversion costs 300000 $2.15 $645,000 Total Costs transferred out $1,440,000 Cost of Ending work in process: EUP Cost per EUP Total Cost Direct Material 65600 $2.65 $173,840 Conversion costs 24600 $2.15 $52,890 Total Cost of Ending work in process $226,730 Total Costs accounted for $1,666,730 at for 21 $o 22 23 24 25 26 27 28 29 30 31 32 33 Sheet146 (11) Sheet26 (22) Sheet26 (27) Sheet298 Sheet26 (26) Sheet242 ) Sheet243 SH III 0 <