Question

Savannah Textiles Company manufactures a variety of natural fabrics for the clothing industry. The following data pertain to the Weaving Department for the month of September. Equivalent units of direct material (weighted average method) Equivalent units of conversion (weighted average method) Units completed and transferred out during September 75,000 67,000 65,000 The cost data for September are as follows: $ 109,300 53, 460 Work in process, September 1 Direct material Conversion Costs incurred during September Direct material Conversion $ 213,200 335, 140 There were 35,000 units in process in the Weaving Department on September 1 (100% complete as to direct material and 40% complete as to conversion). Required: Compute each of the following amounts using weighted average process costing. 1. Cost of goods completed and transferred out of the Weaving Department. 2. Cost of the September 30 work-in-process inventory in the Weaving Department. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the cost of goods completed and transferred out of the Weaving Department. (Round "Costs per equivalent unit" to 2 decimal places.) Cost of goods completed and transferred out

Answer 1

Requirement 1

Cost of goods completed and transferred out = $656,500

Requirement 2

Direct material	$        43,000.00
Conversion	$        11,600.00
Total	$        54,600.00

Working

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 109,300	$ 53,460	$ 162,760
Cost incurred during period		$ 213,200	$ 335,140	$ 548,340
Total Cost to be accounted for		$ 322,500	$ 388,600	$ 711,100
Total Equivalent Units		75,000	67,000
Cost per Equivalent Units		$                   4.30	$                     5.80	$             10.10

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 4.30	10,000	$          43,000.00	65,000	$ 279,500
Conversion cost	$ 5.80	2,000	$          11,600.00	65,000	$      3,77,000.00
TOTAL	$ 711,100	TOTAL	$ 54,600	TOTAL	$ 656,500