Question

Process Costing e Weighted average method, equivalent units The assembly division of Quality Time Pleces, Inc. uses the weighted average method of process costing. Consider the following data for the month of May 2017: Direct Materials $459,888 Physical Units (Watches) 100 510 450 160 Conversion Costs $142,570 $3,237,000 $1,916,000 Beginning work in process (May 1) Started in May 2017 Completed during May 2017 Ending work in process (May 31) Total costs added during May 2017 Degree of completion: Direct materials Conversion costs Degree of completion: Direct materials Conversion costs 80% 35% 80% 40% Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule a. Enter all amounts as positive values.

Answer 1

Solution:

Computation of Equivalent unit of Production
Particulars	Physical Units	Material	Conversion
Units to account for:
Beginning WIP	100
Started into Production	510
Total units to account for	610
Units accounted for:
Unit completed & Transferred out	450	450	450
Units in ending inventory:	160
Material (80%)		128
Conversion (40%)			64
Accounted for	610
Equivalent units of production		578	514