Question

During April, the first production department of a process manufacturing system completed its work on 370,000 units of a product and transferred them to the next department. Of these transferred units, 74,000 were in process in the production department at the beginning of April and 296,000 were started and completed in April. April's beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 96,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion.

Answer 1

Answer

• All requirements, as asked

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	370,000	100%	370,000	100%	370,000
Units of ENDING WIP	96,000	90%	86,400	40%	38,400
Equivalent Units of Production			456,400		408,400
COST per EUP			Material		Conversion
Cost of Beginning WIP			$        200,420.00		$                                  18,532.00
Cost incurred during the period			$    1,191,600.00		$                                818,688.00
Total Costs		Costs	$    1,392,020.00	Costs	$                                837,220.00
Equivalent units of production		EUP	456,400	EUP	408,400
Cost per EUP			$              3.05000		$                                      2.05000

Total Costs to Account for:
Beginning Inventory - Direct Material cost	$                    200,420.00
Beginning Inventory - Conversion cost	$                      18,532.00
Cost incurred suring the period - Direct material cost	$                1,191,600.00
Cost incurred suring the period - Conversion cost	$                    818,688.00
Total costs to account for:	$                2,229,240.00
Total costs accounted for	$                2,229,240.00
Difference due to rounding cost/unit	$                                      -

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	370,000	$                      3.05	$    1,128,500.00
- Conversion	370,000	$                      2.05	$        758,500.00
Total Cost transferred Out				$        1,887,000.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	86,400	$                      3.05	$        263,520.00
- Conversion	38,400	$                      2.05	$          78,720.00
Total cost of ending WIP				$            342,240.00
Total costs accounted for					$                            2,229,240.00