Question

Check my we Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below.] During April, the first production department of a process manufacturing system completed its work on 300,000 units of a product and transferred them to the next department. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion. Exercise 03-9 Weighted average: Costs assigned to output and inventories LO C2 The production department had $850,368 of direct materials and $649,296 of conversion costs charged to it during April, Also, its April beginning inventory of $167,066 consists of $118,472 of direct materials cost and $48,594 of conversion costs. 1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 3. Using the weighted-average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.) Required 1. and 2. Equivalent Units of Production (EUP)- Weighted Average Method

Answer 1

Equivalent unit = Unit transferred out+(Ending WIP*percent completion)

Equivalent unit of material = 300000+(82000*80%) = 365600

Equivalent unit of conversion = 300000+(82000*30%) = 324600

1) Direct material cost per equivalent unit = (850368+118472)/365600 = 2.65

2) Conversion Cost per equivalent unit = (649296+48594)/324600 = 2.15

3) Cost allocation

	Direct material	Conversion	Total
Cost of unit transferred out	795000	645000	1440000
Cost of ending WIP	173840	52890	226730