Question

Process Costing using the Weighted-Average Method 1. Compute the equivalent units of production using the weighted-average method. 2. Compute the cost per equivalent unit using the weighted average method. 3. Assign costs to units using the weighted-average method 4. Prepare a cost reconciliation report. KOS ? x . HOME Process Costing using the Weighted-Average Method - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW - 5 Sign In FILE INSERT Paste IU - 23 - A Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles B63 1 Hayword, Inc. uses weighted average costing and has two departments - mixing and packaging. 2 The following information relates to work in the mixing department for the month of July: 300 60% 40% 4 Work in process, July 1: 5 Units in process 6 Percent completed with respect to materials 7 Percent completed with respect to conversion 8 Cost in the beginning inventory: Materials cost 10 Conversion cost 11 Units started into production during the period 12 Costs added to production during the period: 13 Materials cost 14 Conversion cost 15 Work in process, July 31: 16 Units in process 17 Percent completed with respect to materials Percent completed with respect to conversion $10,500 $6,750 6,200 $332,150 $407,645 450 40% 30%

Answer 1

23 24 29 в с 22 1. Compute equivalent units. Mixing Department Equivalent Units of Production 25 Materials Conversion 26 Units transferred to the next department 6,200 6,200 27 Ending work in process: 28 Materials 180 Conversion 135 30 Equivalent Units of Production 6,380 6,335 31 32 2. Compute cost per equivalent unit. Mixing Department 34 Cost per Equivalent Unit 35 Materials Conversion 36 Cost of beginning work in process $ 10,500 $ 6,750 37 Cost added during the period $332,150 $ 407,645 38 Total Cost $342,650 $ 414,395 39 Equivalent units of production 6,380 6,335 40 Cost per Equivalent Unit $ 53.71 $ 65.41 41 33

47 52 53 B co 42 3. Assign costs 43 Mixing Department 44 Costs of Ending work in process inventory and the units transferred out 45 Materials Conversion Total 46 Ending work in process inventory: Equivalent units of production 180 135 48 Cost per equivalent unit $ 53.71 $ 65.41 49 Cost of ending work in process inventory $ 9,667 $ 8,831 $ 18,498 50 51 Units completed and transferred out: Units transferred to the next department 6200 6200 Cost per equivalent unit $ 53.71 $ 65.41 54 Cost of units transferred out $332,983 $ 405,564 $738,547 55 56 4. Prepare reconciliation. 57 Mixing Department 58 Cost Reconciliation 59 Costs to be accounted for: 60 Cost of beginning work in process inventory $ 17,250 61 Costs added to productio during the period $739,795 62 Total costs to be accounted for $757,045 63 Costs accounted for as follows: 64 Cost of ending work in process inventory $ 18,498 65 Cost of units transferred out $738,547 Total cost accounted for $757,045 66 67

25 22 1. Compute equivalent units. 23 Mixing Department 24 Equivalent Units of Production Materials Conversion 26 Units transferred to the next department 6200 6200 27 Ending work in process: 28 Materials =450*40% Conversion =450*30% 30 Equivalent Units of Production =SUM(B26:B29) =SUM(C26:C29) 29 31 32 2. Compute cost per equivalent unit. 33 Mixing Department 34 Cost per Equivalent Unit 35 Materials Conversion 36 Cost of beginning work in process 10500 6750 37 Cost added during the period 332150 407645 38 Total Cost =SUM(B36:B37) =SUM(C36:C37) 39 Equivalent units of production =B30 =C30 40 Cost per Equivalent Unit =B38/B39 =C38/C39 41

А. B 44 45 D 42 3. Assign costs 43 Mixing Department Costs of Ending work in process inventory and the units transferred out Materials Conversion Total 46 Ending work in process inventory: 47 Equivalent units of production =B28 =C29 Cost per equivalent unit =B40 =C40 49 Cost of ending work in process inventory =B47*B48 =C47*C48 =SUM(B49:C49) 50 52 51 Units completed and transferred out: Units transferred to the next department 53 Cost per equivalent unit 54 Cost of units transferred out 6200 =B40 =B52*B53 6200 =C40 =C52*C53 =SUM(B54:C54) 55 56 4. Prepare reconciliation. 57 Mixing Department 58 Cost Reconciliation 59 Costs to be accounted for: 60 Cost of beginning work in process inventory 17250 61 Costs added to productio during the period 739795 62 Total costs to be accounted for =SUM(B60:B61) 63 Costs accounted for as follows: Cost of ending work in process inventory =D49 Cost of units transferred out =D54 66 Total cost accounted for =SUM(B64:B65) 64 67

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