Question

dansendinn n Totals counted for 500 00 0 50 Requirement 2. Com the cost of the unit is competed and transferred out to the Packaging Department and the Blending Department onding Work in Process Inventory Complete the Production Cost Report that you began in Reument by calculating the por equivalent und in these and on by calculating teasten d ances Step Com b os Eroner ces de cost per equivalent amount to the restoranda ham 0 Data Table Step-by-step Painting Production Cost Report. Blending Department Partial Direct Materials Conversion Costs Osim 9.900 COSTS Gallons Dew Procesory Started in production Complete and red out to Packang May Ending Work e sverborn of the way through the binding process) Costs Begang Won Process inventory 3.500 galon Choose from any store any number in the input ids and then click Check Answer Kn SM

Answer 1

Under weighted average method, equivalent units are to be calculated only for units completed & transferred out and units lying as ending work in process as it is assumed that the units once entered into the process become integral part of total units and no segregation between units transferred from beginning work in process and introduced during current process. Conversion cost includes Labor + Overheads. 0 Physical Gallons of production: Gallons in beginning inventory Add: Gallons started during current period Less: Gallons in ending inventory Gallons completed and transferred out 9,500 -3,500 6,000 % Particulars Equivalent Units of Production (EUP) Whole EUP- Gallons Materials Materials 6,000 100% 6,000 3,500 100% 3,500 9,500 9,500 Completed and transferred out Ending work in process Equivalent Units of Production (EUP) % EUP- Conversion Conversion 100% 6,000 30% 1,050 7,050 [6000 gallons x 100%; 6000 gallons x 100%] [3500 gallons x 100%; 3500 gallons x 30%] NOTE: As Materials are added at the beginning of the process itself, its % of completion in EUP calculation should be 100%.

Total Step-by-Step Painting Production Cost Report - Blending Department (Partial) Month Ended May 31 Materials Conversion Cost of beginning work in process $0 Cost added during the period $5,700 $4,089 Total costs to account for $5,700 $4,089 Divided by Equivalent units of Production (EUP) 9,500 7,050 Cost per Equivalent units of Production $0.60 $0.58 So $0 $9,789 [Conversion = Labor + Overhead = $2,085 + $2,004] $9,789 [As computed EUP schedule presented above] [$5700 / 9500 units = $0.60; $4089 / 7050 units = $0.58]