Question

Check my work Zia Co. makes flowerpots from recycled plastic in two departments, molding and packaging. At the beginning of the month, the molding department has 2,900 units in inventory, 70% complete as to materials. During the month, the molding department started 22,500 units. At the end of the month, the molding department had 4,350 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department. Cost information for the molding department for the month follows: Beginning work in process inventory (direct materials) Direct materials added during the month $ 2,100 36,900 QS 16-19 Weighted average: Assigning costs to output LO C3 Using the weighted average method, assign direct materials costs to the molding department's output-specifically, the units transferred out to the packaging department and the units that remain in process in the molding department at month-end. (Do not round intermediate calculations.) Weighted Average Method Direct Materials Costs of units transferred out Direct materials Costs of ending work in process Direct materials 5,533

Answer 1

solution:

Equivalent units of material = Units completed and transferred out + Units in ending WIP * % of completion with respect to material

= (2900 + 22500 - 4350) + (4350*80%)

= 21050 + 3480

= 24530 units

Cost per equivalent unit = Total costs to be accounted for / Equivalent units = ($2,100 + $36,900) / 24530 = $1.58989 per unit

Weighted average method
Particulars	Direct materials
Cost of units transferred out:
Direct materials	$33,467
Costs of ending work in process:
Direct materials	$5,533
Total costs accounted for	$39,000.00