Question

SeaWorthy uses three processes to manufacture lifts for personal watercraft: forming a lift's parts from galvanized steel, assembling the lift, and testing the completed lift. (Click the icon to view additional information.) More Info - X The lifts are transferred to Finished Goods Inventory before shipment to marinas across the country. SeaWorthy's Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for the month of August: UNITS 2,400 units 7,300 units Beginning Work-in-Process Inventory Transferred in from Assembling Department during the period Completed during the period Ending Work-in-Process Inventory (40% complete for conversion work) COSTS 4,100 units 5,600 units Beginning Work-in-Process Inventory (transferred in costs, $96,000; $ 111,000 conversion cost, $15,000) Transferred in from the Assembly Department during the period 689,700 Conversion costs added during the period 80,100 Print Done

Answer 1

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Seaworthy
Testing Department
Cost of Production Report- Weighted Average
		Equivalent Units
	Whole Units	Transferred in costs	Materials	Conversion Costs	Total Costs
Flow of production of units:
Units charged to production:
Opening Inventory in process	2,400.00
Transferred in from Assembly in August	7,300.00
Total units to be accounted for	9,700.00
Units accounted for
Units completed and transferred out
From beginning Inventory	2,400.00	2,400.00	2,400.00	2,400.00
Started and completed currently	1,700.00	1,700.00	1,700.00	1,700.00
Units ending in WIP Inventory	5,600.00	5,600.00	2,240.00	3,920.00		This is Whole units* % pending to complete.
Total Units accounted for	9,700.00	9,700.00	6,340.00	8,020.00
Costs to be accounted for
Costs in beginning WIP Inventory		96,000.00		15,000.00	111,000.00
Current period costs		689,700.00		80,100.00	769,800.00
Total costs to be accounted for		785,700.00	-	95,100.00	880,800.00
Costs per equivalent unit
Transferred in costs		81.00			81.00
Materials			-		-
Conversion Costs				11.86	11.86
Costs accounted for
Costs assigned to units transferred out
Costs assigned to beginning WIP inventory
Transferred in costs		194,400.00			194,400.00
Materials			-		-
Conversion Costs				28,458.85	28,458.85
Costs assigned to beginning WIP inventory		194,400.00	-	28,458.85	222,858.85
Costs assigned to Started and completed currently
Transferred in costs		137,700.00			137,700.00
Materials			-		-
Conversion Costs				20,158.35	20,158.35
Costs assigned to Started and completed currently		137,700.00	-	20,158.35	157,858.35
Total Costs of units transferred out		332,100.00	-	48,617.21	380,717.21
Costs assigned to ending WIP inventory
Transferred in costs		453,600.00			453,600.00
Materials			-		-
Conversion Costs				46,482.79	46,482.79
Total ending WIP inventory		453,600.00	-	46,482.79	500,082.79
Total Costs accounted for		785,700.00	-	95,100.00	880,800.00
Note: in Weighted Average method total cost (production+ Opening WIP) is allocated among equivalent units.

Started and completed in August:
Units completed in August		4,100.00
Less: Opening Inventory		2,400.00
Started and completed in August:		1,700.00