Question

5. Bae Inc. was the weighted average method in its process costing system. The Following date concern the operations of the company's first processing department for a 400 70% 90% 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: $1,000 $6,000 Materials cost Conversion cost ......... Units started into production during the month. Units completed and transferred out 9,600 9,200 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: (a) Determine the equivalent units of production for conversion costs. (5 points) (b) Determine the conversion cost per equivalent unit (rounded to the nearest cent). (5 points)

Answer 1

a) Equivalent units of production for conversion	9,600.00
b) Conversion cost per equivalent unit	31.9
Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent materials	Conversion	%completion	Equivalent Conversion
Beginning Inventory in process	400.00	100%	400.00	400.00	100%	400.00
Started and completed in month = 9200 -400	8,800.00	100%	8,800.00	8,800.00	100%	8,800.00
Transferred to finished goods in period
Ending Inventory in process = 9600 -8800	800.00	80%	640.00	800.00	50%	400.00
Equivalent Units			9,840.00			9,600.00
Opening WIP Costs			1,000.00			6,000.00
Current Month Costs			200,000.00			300,000.00
Total costs			201,000.00			306,000.00
Cost per Equivalent units			20.4			31.9