Question

Show all supporting computations! 1. Chase Inc, uses the weighted average method in its process costing system. im beginning inventory in the first processing department consisted of 800 units. The costs a percentage completion of these units in beginning inventory were: Materials costs.................... Conversion costs ............ Cost $6,000 $9.900 Percent Complete 50% 3,000 30% 2,970 A total of 9,200 units were started and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs................. Conversion costs ............... $113.900 $322,500 The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs. Required (7 Points): Using the weighted-average method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs, and the total product cost per equivalent unit. c. Determine the cost of units transferred out of the department during the month. d. Determine the cost of ending work in process inventory in the department. mat cony -1-

Answer 1

Requirement a

	Material	Conversion
Equivalent Units of Production	9,640	8,560

Requirement b

	Material	Conversion	Total
Cost per equivalent Unit	$                  12.44	$                 38.83	$                   51.27

Requirement c

	Material	Conversion	Total
Units Completed and transferred	$ 101,990	$ 318,421	$ 420,410

Requirement d

	Material	Conversion	Total
Ending Inventory	$ 17,910	$ 13,979	$ 31,890

.

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	8,200			100%	8,200	100%	8,200
Ending WIP	1,800			80%	1,440	20%	360
Total	10,000			Total	9,640	Total	8,560

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 6,000	$ 9,900	$ 15,900
Cost incurred during period		$ 113,900	$ 322,500	$ 436,400
Total Cost to be accounted for		$ 119,900	$ 332,400	$ 452,300
Total Equivalent Units		9,640	8,560
Cost per Equivalent Units		$                 12.44	$                   38.83	$             51.27

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 12.44	1,440	$          17,910.37	8,200	$ 101,990
Conversion cost	$ 38.83	360	$          13,979.44	8,200	$ 318,421
TOTAL	$ 452,300	TOTAL	$ 31,890	TOTAL	$ 420,410