Question

During April, the first production department of a process manufacturing system completed its work on 355,000 units of a product and transferred them to the next department. Of these transferred units, 71,000 were in process in the production department at the beginning of April and 284,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 93,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion. The production department had $1,106,991 of direct materials and $800,823 of conversion costs charged to it during April. Also, its April beginning inventory of $207,646 consists of $165,239 of direct materials cost and $42,407 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.)

Answer 1

Answer

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	355,000	100%	355,000	100%	355,000
Units of ENDING WIP	93,000	90%	83,700	40%	37,200
Equivalent Units of Production			438,700		392,200
COST per EUP			Material		Conversion
Cost of Beginning WIP			$        165,239.00		$                                 42,407.00
Cost incurred during the period			$    1,106,991.00		$                                800,823.00
Total Costs		Costs	$    1,272,230.00	Costs	$                                843,230.00
Equivalent units of production		EUP	438,700	EUP	392,200
Cost per EUP			$              2.90000		$                                      2.15000

Total Costs to Account for:
Beginning Inventory - Direct Material cost	$                    165,239.00
Beginning Inventory - Conversion cost	$                      42,407.00
Cost incurred suring the period - Direct material cost	$                1,106,991.00
Cost incurred suring the period - Conversion cost	$                    800,823.00
Total costs to account for:	$                2,115,460.00
Total costs accounted for	$                2,115,460.00
Difference due to rounding cost/unit	$                                      -

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	355,000	$                      2.90	$    1,029,500.00
- Conversion	355,000	$                      2.15	$        763,250.00
Total Cost transferred Out				$        1,792,750.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	83,700	$                      2.90	$        242,730.00
- Conversion	37,200	$                      2.15	$          79,980.00
Total cost of ending WIP				$            322,710.00
Total costs accounted for					$                            2,115,460.00