Question

Required information [The following information applies to the questions displayed below.) During April, the first production department of a process manufacturing system completed its work on 370,000 units of a product and transferred them to the next department. Of these transferred units, 74,000 were in process in the production department at the beginning of April and 296,000 were started and completed in April. April's beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 96,000 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 Tota

Answer 1

1.

Units to account for		Materials		Conversion
	Units	%Materials	EUP- Materials	% Conversion	EUP- Conversion
Units completed and transferred out	370,000	100%	370000	100%	370000
Units in ending inventory	96,000	90%	86400	40%	38400
Equivalent units of production	466,000		456,400		408,400
Cost per EUP
Costs of beginning inventory		Costs	200420	Costs	18532
Costs incurred this period		EUP	1191600	EUP	818688
Total costs			1392020		837220
/Equivalent units of production			456,400		408,400
Cost per Equivalent unit of production			3.05		2.05

2.

Direct materials - Current period	1191600
Direct materials - Prior period	200420
Conversion - Current period	818688
Conversion- Prior period	18532
Total costs to account for	2229240
Total costs to accounted for	2229240
Difference due to rounding costs/units	0

3.

Costs transferred out	EUP	Cost per EUP	Total cost
Direct Materials	370000	3.05	1128500
Conversion	370000	2.05	758500
Total transferred out			1887000
Costs of ending work in process
Direct Materials	86400	3.05	263520
Conversion	38400	2.05	78720
Total work in process			342240
Total costs accounted for			2229240