Question

Equivalent Units and Product cost Report-Weighted Average Method The following data (and annotations) are for Joyner Company's processing department work-in-process account for the month of June 2019: Beginning inventory (700 units, 40% complete) Direct materials $29,050 Conversion costs 79,420 Current period Direct materials (5,000 units) 350,000 Direct labor 596,000 Manufacturing overhead applied 378,000 Joyner uses the weighted average method. Materials are added at the beginning of the process and conversion costs are incurred evenly throughout. Ending work-in-process is composed of 900 units, 70% complete. Compute the following: a. Equivalent units for materials and conversion. b. Cost per equivalent unit for materials and conversion. c. Total cost assigned to the units transferred out.

Answer 1

Solution:

				Equivalent units
Where do the units come from		Where do the units go		% work done	Direct materials	% work done	Conversion
Beginning inventory	700	Complete / transferred	4800	100%	4800	100%	4800
Started	5000	Ending inventory	900	100%	900	70%	630
Total	5700	Total	5700		5700		5430
Production Cost report
Where do the costs come from			Direct materials	Conversion Costs
Beginning inventory	$108,470.00		$29,050.00	$79,420.00
Current	$1,324,000.00		$350,000.00	$974,000.00
Total costs to account for	$1,432,470.00		$379,050.00	$1,053,420.00
/ Total equivalent units			5700	5430
Average cost per equivalent unit			$66.50	$194.00
Where do the costs go:
Completed / Transferred:
Direct materials		$319,200.00
Conversion costs		$931,200.00
Cost of goods manufactured		$1,250,400.00
Ending inventory:
Direct materials		$59,850.00
Conversion costs		$122,220.00
Cost of ending inventory		$182,070.00
Total costs allocated		$1,432,470.00