Question

Ch 03 Ex 3-9 A Saved Help Save & Exit Submit Check my work 10 points Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] eBook Hint During April, the first production department of a process manufacturing system completed its work on 405,000 units of a product and transferred them to the next department. Of these transferred units, 81,000 were in process in the production department at the beginning of April and 324,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 103,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion. Ask Print References Exercise 03-9 Weighted average: Costs assigned to output and inventories LO C2 The production department had $1,434,675 of direct materials and $1,002,573 of conversion costs charged to it during April. Also, its April beginning inventory of $287,867 consists of $222,485 of direct materials cost and $65,382 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.)

Answer 1

Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	405000	100%	405000	100%	405000
Units in ending inventory	103000	80%	82400	30%	30900
Equivalent units of production	508000		487400		435900
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			222485		65382
Costs incurred this period			1434675		1002573
Total costs		Costs	1657160	Costs	1067955
÷ Equivalent units of production		EUP	487400	EUP	435900
Cost per equivalent unit of production			3.40		2.45
Total costs to account for:
Direct Materials-Prior period	222485
Conversion-Prior period	65382
Direct Materials-Current period	1434675
Conversion-Current period	1002573
Total costs to account for	2725115
Total costs accounted for	2725115
Difference due to rounding cost/unit	0
Cost Assignment and Reconciliation:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	405000	3.40	1377000
Conversion	405000	2.45	992250
Total cost transferred out				2369250
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	82400	3.40	280160
Conversion	30900	2.45	75705
Total Cost of ending work in Process				355865
Total cost accounted for				2725115