Question

During April, the first production department of a process manufacturing system completed its work on 385,000 units of a product and transferred them to the next department. Of these transferred units, 77,000 were in process in the production department at the beginning of April and 308,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 99,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion.

Compute the number of equivalent units with respect to both materials used and conversion used in the first production department for April using the weighted-average method.

Equivalent Units of Production - Weighted Average Units % Materials EUP—Materials % Conversion EUP—Conversion Total

The production department had $1,332,034 of direct materials and $915,420 of conversion costs charged to it during April. Also, its April beginning inventory of $225,016 consists of $185,086 of direct materials cost and $39,930 of conversion costs.

1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)
2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)
3. Using the weighted-average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	385000	100%	385000	100%	385000
Ending work in process	99000	90%	89100	40%	39600
Total units	484000		474100		424600
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			185086		39930
Costs incurred this period			1332034		915420
Total costs		Costs	1517120	Costs	955350
÷ Equivalent units of production		EUP	474100	EUP	424600
Cost per equivalent unit of production			3.20		2.25
Total costs to account for:
Direct materials-Prior period	185086
Conversion costs-Prior period	39930
Direct materials-Current period	1332034
Conversion costs-Current period	915420
Total costs to account for	2472470
Total costs accounted for	2472470
Difference due to rounding cost/unit	0
Cost Assignment and Reconciliation:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	385000	3.20	1232000
Conversion	385000	2.25	866250
Total cost transferred out				2098250
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	89100	3.20	285120
Conversion	39600	2.25	89100
Total Cost of ending work in Process				374220
Total cost accounted for				2472470