Question

Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction Industry). The following information is for the production of these trusses for the month of February 4.100 trusses $10,580 $15, 358 18,100 trusses 17,100 trusses Work-in-process inventory, February 1 Direct materials: 100% complete Conversion: 48% complete Units started during February Units completed during February and transferred out Work-in-process inventory, February 29 Direct materials: 100% complete Conversion: 20% complete Costs incurred during February Direct materials Conversion $59, 140 $92,192 Required Using the weighted-average method, calculate the following: 1-a. Costs per equivalent unit. (Round your answers to 4 decimal places.) 1-D. Cost of goods completed and transferred out. (Round "Cost per EU" to 4 decimal places. Round final answer to nearest whole dollars.) 1. Costs remaining in the Work in Process Inventory account. (Round "Cost per EU" to 4 decimal places. Do not round other sanwartanearest whole dollars.)

Answer 1

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Alvis Company
Cost of Production Report
For the Month Ended Feb 28		Equivalent Units
Unit information	Physical Units	Materials	Conversion
Units charged to production:
Inventory in process Feb 1	4,100.00
Units started during Feb	18,100.00				Note B
Total units accounted for	22,200.00				Started and completed in Feb
					Goods transferred out in Feb	17,100.00
Units to be assigned costs:					Less: Opening work in process	4,100.00
Inventory in process Feb 1	4,100.00	4,100.00	4,100.00		Started and completed in Feb	13,000.00
Started and completed in Feb	13,000.00	13,000.00	13,000.00	See note B
Goods transferred out in Feb	17,100.00	17,100.00	17,100.00
Inventory in process, Feb 28	5,100.00	5,100.00	1,020.00	This is closing units multiplied by % of completion
Total units to be assigned costs:	22,200.00	22,200.00	18,120.00
Cost Information				Total
Costs per equivalent unit
Costs of opening inventory		10,580.00	15,350.00
Total costs for Feb in		59,140.00	92,192.00
Total costs incurred		69,720.00	107,542.00
Total equivalent units		22,200.00	18,120.00
Cost per equivalent unit		3.1405	5.9350	9.0755	This is answer 1 a and 2.
Costs allocated to completed and partially completed units
Transferred to next Department in Feb		53,702.55	101,488.50	155,191.00	This is answer 1 b.
Inventory in process, Feb 28		16,016.55	6,053.70	22,070.00	This is answer 1 c.

Answer 2
Units to be assigned costs:
Inventory in process Feb 1	4,100.00	4,100.00	4,100.00
Started and completed in Feb	13,000.00	13,000.00	13,000.00	See note B
Goods transferred out in Feb	17,100.00	17,100.00	17,100.00
Inventory in process, Feb 28	5,100.00	5,100.00	2,040.00	This is closing units multiplied by % of completion
Total units to be assigned costs:	22,200.00	22,200.00	19,140.00
Cost Information				Total
Costs per equivalent unit
Costs of opening inventory		10,580.00	15,350.00
Total costs for Feb in		59,140.00	92,192.00
Total costs incurred		69,720.00	107,542.00
Total equivalent units		22,200.00	19,140.00
Cost per equivalent unit		3.1405	5.6187	8.7592
Total cost per equivalent if 20%	9.0755
Total cost per equivalent if 40%	8.7592
So weighted average cost per equivalent will decrease by	$         0.3163