Question

[The following information applies to the questions displayed below.) The Matsui Lubricants plant uses the weighted average method to account for its work-in-process inventories. The accounting records show the following information for a particular day. $ Beginning WIP inventory Direct materials Conversion costs Current period costs Direct materials Conversion costs 976 272 11,440 6,644 Quantity information is obtained from the manufacturing records and includes the following. Beginning inventory Current period units started Ending inventory 600 units (60% complete as to materials, 53% complete as to conversion) 4, eee units 1,200 units (40% complete as to materials, 2ex complete as to conversion) < Prev 1 of 16 Next > arch

Answer 1

Solution:

u AR VK F G H Equivalent units of production (EUP) - Weighted Average method Units % material EUP-Materials % Conversion EUP- Conversion Units Completed and transferred out (600+4000-1200) 3400 100% 3400 100% 3400 units of Ending work in process 1200 40% 480 20% 240 Equivalent units of production 3880 3640 000 10 15 16 Cost per Equivalent unit: Material Conversion Cost of Beginning Work in Process $976 $272 Cost added $11,440 $6,644 Total Costs $12,416 $6,916 /Equivalent units of Production 38800 3640 Cost per Equivalent unit of Production $3.20 $1.90 Cost Assignment and reconciliation Cost of Units Transferred Out EUP Cost per EUP Material 3400 $3.20 Conversion 3400 $1.90 Total transferred out 17 18 19 Total Cost $10,880 $6,460 $17,340 21 22 23 24 Cost of ending work in process Material Conversion Total Ending work in process EUP Cost per EUP 480 $3.20 240 $1.90 Total Cost $1,536 $456 $1,992 25 26 27 +8) Sheet578 Sheet578 (4) Sheet578 (5) Sheet21 (2) Sheet5 (2) Sheet291 (2) Sheet2 ).