Question

Required information The following information applies to the questions displayed below) of 2 During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 72,000 were in process in the production department at the beginning of April and 288,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 94,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion 1. Compute the number of units transferred to finished goods. 2. Compute the number of equivalent units with respect fo both materials used and conversion used in the production department for April using the weighted average method Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the number of units transferred to finished goods. Units transferred out Required 2 >

Answer 1

1) Calculation of Units transferred to finished goods

Units in beginning inventory	72000
Units started and completed in April	288000
Number of units transferred to finished goods	360000

2)

Equivalent Units of Production- Weighted Average
	Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Units completed and transferred out	360000	100%	360000	100%	360000
Units in ending work in process	94000	80%	(94000*80%)= 75200	30%	(94000*30%)= 28200
Equivalent units of production	454000		435200		388200

1&2) Units completed and transferred out= Units in beginning inventory+Units started and completed during April

= 72000+288000= 360000 units

Equivalent Units of Production- Weighted Average Method
	Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Units completed and transferred out	360000	100%	360000	100%	360000
Units in ending work in process	94000	80%	(94000*80%)= 75200	30%	(94000*30%)= 28200
Equivalents units of production	454000		435200		388200
Cost per Equivalents unit of production			Materials		Conversion
Cost of beginning inventory			167920		38028
Cost incurred during April			1115920		777192
Total costs		Costs	1283840	Costs	815220
/ Equivalents units of production		EUP	435200	EUP	388200
Cost per equivalents unit of production			$2.95		$2.10
Total Costs to Account for:
Direct materials- Prior period	167920
Direct materials- Current period	1115920
Conversion- Prior period	38028
Conversion- Current period	777192
Total costs to account for	2099060
Total costs accounted for	2099060
Difference due to rounding cost/unit	$0
Cost Assignment and Reconciliation
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	360000	$2.95	$1062000
Conversion	360000	$2.10	756000
Total costs transferred out				$1818000
Cost of ending work in process
Direct materials	75200	$2.95	$221840
Conversion	28200	$2.10	59220
Total cost of ending work in process				281060
Total costs accounted for				2099060