Question

Homework #3 - 10 points Due: Wed/Thurs, February 12/13, 2020 Assurer Inc. uses the weighted average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Work in process, beginning: Units in process..... Percent complete with respect to materials............ Percent complete with respect to conversion......... Costs in the beginning inventory: Materials cost......... Conversion cost ......... 300 80% 70% $1,368 $8,064 Units started into production during the month......... Units completed and transferred out.................. 11,000 11,000 Costs added to production during the month: Materials cost.... Conversion cost ............... $64,948 $412,179 Work in process, ending: Units in process.... Percent complete with respect to materials............ Percent complete with respect to conversion......... 300 80% 10% Required: a. Determine the equivalent units of production. b. Determine the costs per equivalent unit. c. Determine the cost of ending work in process inventory. d. Determine the cost of the units transferred to the next department.

pls answer as soon as possible, thank you

Answer 1

Answer

• All working forms part of the answer
• Requirement [a]

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	11,000	100%	11,000	100%	11,000
Units of ENDING WIP	300	80%	240	10%	30
Equivalent Units of Production			11,240		11,030

• [b]

COST per EUP			Material		Conversion
Cost of Beginning WIP			$             1,368.00		$                                    8,064.00
Cost incurred during the period			$          64,948.00		$                                412,179.00
Total Costs		Costs	$          66,316.00	Costs	$                                420,243.00
Equivalent units of production		EUP	11,240	EUP	11,030
Cost per EUP			$              5.90000		$                                   38.10000

• [c]

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	240	$                      5.90	$             1,416.00
- Conversion	30	$                    38.10	$             1,143.00
Total cost of ending WIP				$                 2,559.00

• [d]

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	11,000	$                      5.90	$          64,900.00
- Conversion	11,000	$                    38.10	$        419,100.00
Total Cost transferred Out				$            484,000.00