Question

Check my wo The Plastic Flowerpots Company has two manufacturing departments, molding and packaging. At the beginning of the month, the molding department has 2,400 units in inventory. 70% complete as to materials. During the month, the molding department started 20,000 units. At the end of the month, the molding department had 3,600 units in ending inventory. 80% complete as to materials. Units completed in the molding department are transferred into the packaging department. Cost information for the molding department for the month follows: Beginning work in process inventory direct materiala) Direet materials added during the month $ 1,600 31,900 Using the weighted-average method, assign direct materials costs to the molding department's output-specifically, the units transferred out to the packaging department and the units that remain in process in the molding department at month-end. (Do not round Intermediate calculations.) Weighted Average Method Direct Materials Costs of units transferred out Direct materials Costs of ending work in process Direct materials Total costs assigned

Answer 1

Compute total cost assigned using the weighted average method as follows:

Particulars	Direct Material
Cost of completed units transferred out (18,800 equivalent units × $1.5452 per equivalent unit)	$29,050
Cost of ending work-in-process (2,880 equivalent units × $1.5452 per equivalent unit)	$4,450
Total cost assigned	$33,500

Notes:

Compute units completed transferred as follows

Particulars	Units
Beginning work-in-process inventory	2,400
Add: Units started in molding department	20,000
Total units to account for	22,400
Deduct: Ending work-in-process inventory	3,600
Units completed and transferred to packing department	18,800

Compute total equivalent units as follows

Particulars	Equivalent Units
Completed and transferred units (18,800 × 100%)	18,800
Add: Ending work-in-process inventory (3,600 × 80%)	2,880
Total Equivalents units of production	21,680

Compute cost per equivalent unit as follows

Particulars	Amount
Beginning work-in-process	$1,600
Add: Direct material added during the period	$31,900
Total cost	$33,500
÷   Total Equivalents units of production	21,680
Cost per equivalent of production	$1.5452