Question

Equivalent Units and Product Cost Report-Weighted Average Method The following data (and annotations) are for the work-in-process account of the first of Johnson Company's four departments used in manufacturing its only product for October of 2019. Work in Process-Department 1 Beginning balance (2,000 units, 70% complete) Direct material $15,500 Conversion costs 9,600 Transferred to department 2: (20,000 units) (a) Direct material (21,000 units) 157,000 Direct labor 145,200 Manufacturing overhead 48,135 Ending balance [(b) units, 25% complete] (C)

Answer 1

Production Cost report
			Total	Direct	Conversion
			Costs	Materials	Costs
Beginning inventory			$   25,100.00	$   15,500.00	$     9,600.00
Current			$ 350,335.00	$ 157,000.00	$ 193,335.00
Total cost to account for			$ 375,435.00	$ 172,500.00	$ 202,935.00
÷ Total Equivalent Units				23000	20750
Avg cost/ equivalent unit				$             7.50	$             9.78
Complete/ Transferred:
Direct Materials			$ 150,000.00	W.N.1
Conversion Costs			$ 195,600.00
Cost of Goods Manufactured			$ 345,600.00	(a)
Ending Inventory:
Direct Materials			$   22,500.00	W.N.2
Conversion Costs			$     7,335.00
Cost of Ending Inventory			$   29,835.00	(b)
Total costs allocated			$ 375,435.00	(a+b)

W.N.1
Cost of Goods Manufactured
			Cost per	Costs
Particulars		Eq. Units	Eq. Units	Assigned
Direct Materials		20000	$      7.50	$ 150,000.00
Conversion Costs		20000	$      9.78	$ 195,600.00
Total				$ 345,600.00

W.N.2
Cost of Ending Inventory
			Cost per	Costs
Particulars		Eq. Units	Eq. Units	Assigned
Direct Materials		3000	$      7.50	$   22,500.00
Conversion Costs		750	$      9.78	$     7,335.00
Total				$   29,835.00