Question

The following info is given in the previous page: Work in process, beginning Units in process.... Stage of completion with respect to materials ....... Stage of completion with respect to conversion Costs in the beginning inventory: Materials cost..... Conversion cost 400 70% 90% $1,000 $6,000 9,600 9,200 Units started into production during the month. Units completed and transferred out Costs added to production during the month: Materials cost..... Conversion cost ... $200,000 $300,000 Work in process, ending Units in process ......... Stage of completion with respect to materials ..... Stage of completion with respect to conversion ... 800 80% 50% Using the weighted average method: (c) Determine the conversion cost of units transferred out of the department during the month. (4 points) (d) Determine the conversion cost of ending work in process inventory in the departmen (4 points)

Answer 1

a) Equivalent units of production for conversion	9,600.00
b) Conversion cost per equivalent unit	31.9
c) Conversion costs of units transferred out	293,250.0
d) Conversion cost of ending WIP	12,750.0
Statement of Equivalent production
Particulars	Conversion	%completion	Equivalent Conversion
Beginning Inventory in process	400.00	100%	400.00
Started and completed in month = 9200 -400	8,800.00	100%	8,800.00
Transferred to finished goods in period			9,200.00
Ending Inventory in process = 9600 -8800	800.00	50%	400.00
Equivalent Units			9,600.00
Opening WIP Costs			6,000.00
Current Month Costs			300,000.00
Total costs			306,000.00
Cost per Equivalent units			31.9
Units completed and transferred out			9,200.00
Cost of Units completed and transferred out			293,250.00
Ending WIP Units			400.00
Cost of Ending WIP			12,750.00