Question

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) 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, 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. Exercise 20-9 Weighted average: Costs assigned to output and inventories LO C2 The production department had $1,191,600 of direct materials and $818,688 of conversion costs charged to it during April. Also, its beginning inventory of $218.952 consists of $200.420 of direct materials cost and $18.532 of conversion costs. 182. Using the weighted average method, compute the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department's output. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	370000	100%	370000	100%	370000
Ending work in process	96000	90%	86400	40%	38400
Total units	466000		456400		408400
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			200420		18532
Costs incurred this period			1191600		818688
Total costs		Costs	1392020	Costs	837220
÷ Equivalent units of production		EUP	456400	EUP	408400
Cost per equivalent unit of production			3.05		2.05
Total costs to account for:
Direct materials-Prior period	200420
Conversion costs-Prior period	18532
Direct materials-Current period	1191600
Conversion costs-Current period	818688
Total costs to account for	2229240
Total costs accounted for	2229240
Difference due to rounding cost/unit	0
Cost Assignment and Reconciliation:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	370000	3.05	1128500
Conversion	370000	2.05	758500
Total cost transferred out				1887000
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	86400	3.05	263520
Conversion	38400	2.05	78720
Total Cost of ending work in Process				342240
Total cost accounted for				2229240