Question

Problem 6-37 Weighted Average Method [LO 6-2, 6-4] Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company's production schedule for May: Percent Completed Tons of Pulp 5,000 12,000 17,000 Materials 100% Conversion 50% Work-in-Process Inventory, May 1 Started during May Units to account for Units from beginning Work-in-process, which were completed and transferred out during May Started and completed during May Work-in-Process Inventory, May 31 Total units accounted for 5,000 7,200 4,800 17,000 100% 50% The following cost data are available: $ 73,690 23,494 Work-in-Process Inventory, May 1 Direct materials Conversion Costs incurred during May Direct materials Conversion 188, 280 315,810

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	17,000	14,600

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	Material	Conversion
Cost per equivalent Unit	$                  15.41	$                 23.24

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	12,200			100%	12,200	100%	12,200
Ending WIP	4,800			100%	4,800	50%	2,400
Total	17,000			Total	17,000	Total	14,600

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Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 73,690	$ 23,494	$ 97,184
Cost incurred during period		$ 188,280	$ 315,810	$ 504,090
Total Cost to be accounted for		$ 261,970	$ 339,304	$ 601,274
Total Equivalent Units		17,000	14,600
Cost per Equivalent Units		$                 15.41	$                   23.24	$             38.65