Question

Required information [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, 65,000 were in process in the production department at the beginning of April and 260,000 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, 87,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion. The production department had $910,750 of direct materials and $707,656 of conversion costs charged to it during April. Also, its beginning inventory of $185,754 consists of $137,830 of direct materials cost and $47,924 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.)

Answer 1

Answer

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	325,000	100%	325,000	100%	325,000
Units of ENDING WIP	87,000	90%	78,300	40%	34,800
Equivalent Units of Production			403,300		359,800
COST per EUP			Material		Conversion
Cost of Beginning WIP			$        137,830.00		$                                  47,924.00
Cost incurred during the period			$        910,750.00		$                                707,656.00
Total Costs		Costs	$    1,048,580.00	Costs	$                                755,580.00
Equivalent units of production		EUP	403,300	EUP	359,800
Cost per EUP			$              2.60000		$                                      2.10000

Total Costs to Account for:
Beginning Inventory - Direct Material cost	$                    137,830.00
Beginning Inventory - Conversion cost	$                      47,924.00
Cost incurred suring the period - Direct material cost	$                    910,750.00
Cost incurred suring the period - Conversion cost	$                    707,656.00
Total costs to account for:	$                1,804,160.00
Total costs accounted for	$                1,804,160.00
Difference due to rounding cost/unit	$                                      -

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	325,000	$                      2.60	$        845,000.00
- Conversion	325,000	$                      2.10	$        682,500.00
Total Cost transferred Out				$        1,527,500.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	78,300	$                      2.60	$        203,580.00
- Conversion	34,800	$                      2.10	$          73,080.00
Total cost of ending WIP				$            276,660.00
Total costs accounted for					$                            1,804,160.00