Question

Exercise 16-16 Weighted average: Process cost summary LO C3

Elliott Company produces large quantities of a standardized product. The following information is available for the first process in its production activities for March.

Units			Costs
Beginning work in process inventory	3,500		Beginning work in process inventory
Started	35,000		Direct materials	$	4,340
Ending work in process inventory	7,000		Conversion		13,608
							$	17,948
Status of ending work in process inventory			Direct materials added					237,440
Materials—Percent complete	100	%	Direct labor added					221,795
Conversion—Percent complete	35	%	Overhead applied (140% of direct labor)					310,513
			Total costs to account for				$	787,696
			Ending work in process inventory				$	83,356

Answer 1

Total cost to account for:
Beginning work in process	$17,948
Cost added during March	769,748
Total cost to account for	787,696
Total cost accounted for	787,696
Difference due to rounding cost /unit	0
Unit Reconciliation:
Units to account for
Beginning work in process	3,500
Units started	35,000
Total units to account for	38,500
Total units accounted for:
Units completed and transferred	31,500
Ending work in process	7,000
Total units accounted for	38,500
Equivalent units of production(EUP)-Weighted average method
	Units	%Materials	EUP-Material	%Conversion	EUP-Conversion
Units completed and transferred	31,500	100%	31,500	100%	31,500
Ending work in process	7,000	100%	7,000	35%	2,450
Total units	38,500		38,500		33,950
Cost per equivalent units of production			Material		Conversion
Beginning work in process			$4,340		$13,608
Cost added during March			237,440		532,308
Total costs		Costs	$241,780	Costs	$545,916
Equivalent units of production		EUP	38,500	EUP	33,950
Cost per equivalent unit of production			$6.28		$16.08
Total cost accounted for:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct material	31,500	$6.28	$197,820
Conversion	31,500	$16.08	$506,520
Total cost transferred out			$704,340
Cost of ending work in process	EUP	Cost per EUP	Total cost
Direct material	7,000	$6.28	$43,960
Conversion	2,450	$16.08	$39,396
Total cost of ending work in process			$83,356
Total cost accounted for			$787,696