Question

The following data pertain to Tulsa Paperboard Company, a manufacturer of cardboard boxes. 9.000 units 20.500 16.900 work in process, February 1 Direct material Conversion Costs incurred during February Direct material Conversion $172,000 152,750 "Complete as to direct material: 20% complete as to conversion The equivalent units of activity for February were as follows: 107.000 Direet material weighted average method) Conversion weighted average method) Completed and transferred out 80,000 Required: Compute the following amounts using weighted average process costing 1 Cost of goods completed and transferred out during February 2. Cost of the February 28 work in process inventory Complete this question by entering your answers in the tabs below. Required 1 Required 2 < Prev 3 of 3 Next >

Answer 1

Basic working needed before answering the questions

Total cost of raw materials = 20600 + 172000 = 192600

Equivalent units for materials = 107000 ( given )

Hence, Unit cost per equivalent unit = 192600 / 107000 = 1.80

Total cost of conversion = 16900 + 152750 = 169650

Equivalent units for conversion = 87000

Hence, Unit cost per equivalent unit = 169650 / 87000 = 1.95

Question - (1)

Cost of goods completed and transferred out = 80000 Units * ( 1.80 + 1.95 ) = 300,000

Question - (2)

Information regarding Ending WIP is not given in the question. Hence we can obtain value of ending WIP as a balancing figure.

Total cost to account for = Total Material cost + total conversion cost = 192600 + 169650 = 362250

Cost accounted for ............Completed and transferred out = 300,000

Cost accounted for ...........Ending WIP ( Balance ) = 362250 - 300000 = 62250