Question

The records of Fremont Corporation's initial and unaudited accounts show the following ending inventory balances, which must be adjusted to actual costs. Units Unaudited Costs $798,572 343,800 Work-in-process inventory Finished goods inventory 140,000 18,000 As the auditor, you have learned the following information. Ending work-in-process inventory is 40 percent complete with respect to conversion costs. Materials are added at the beginning of the manufacturing process, and overhead is applied at the rate of 80 percent of the direct labor costs. There was no finished goods inventory at the start of the period. The following additional information is also available Costs Units 78,000 440,000 Direct Materials S 394,300 Direct Labor 388,000 Beginning inventory (80% complete as to labor) Units started Current costs Units completed and transferred to finished goods inventory 1,800,000 2,216,000 378,000 Required: a. Prepare a production cost report for Fremont using the weighted-average method. (Hint You will need to calculate equivalent units for three categories: materials, labor, and overhead.) (Round "Cost per equivalent unit" to 2 decimal places.) FREMONT CORPORATION Production Cost Report-Weighted-Average Flow of Production Units Physical Units Units to be accounted for 78,000 Beginning WP inventory 440,000 518,000 Units started this period Total units to be accounted for Compute Equivalent Units Materials Overhead Units accounted for: Units completed and transferred out 78,000 300,000 378,000 140.000 518.000 From beginning inventory Started and completed currently 378,000 140,000 518,000 378,000 378,000 58,000 434,000 Transferred out Units in ending WP inventory 58,000 434,000 Total units accounted for DETAILS Labor Total Costs Materials Overhead Costs to be acoounted for Costs in beginning WP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Materials Labo Overhead Costs accounted for Costs assigned to units transferred out Materials Labor Overhead Total costs of units transferred out Costs assigned to ending WIP inventory Materials Labor Overhead Total ending WP inventory Total costs accounted for

Answer 1

					Details
					Total Costs	Material	Labor	Overhead
Cost to be accounted for:
Cost in beginning WIP inventory					$ 1,092,700.00	$    394,300.00	$    388,000.00	$    310,400.00
Current period costs					$ 5,588,800.00	$ 1,600,000.00	$ 2,216,000.00	$ 1,772,800.00
Total costs to be accounted for					$ 6,681,500.00	$ 1,994,300.00	$ 2,604,000.00	$ 2,083,200.00
Cost per equivalent unit:
Materials						$                3.85
Labor							$                6.00
Overhead								$                4.80
Costs accounted for:
Costs assigned to units transferred out
Materials					$ 1,455,300.00	$ 1,455,300.00
Labor					$ 2,268,000.00		$ 2,268,000.00
Overhead					$ 1,814,400.00			$ 1,814,400.00
Total cost of units transferred out					$ 5,537,700.00
Cost assigned to ending WIP inventory
Materials					$    539,000.00	$    539,000.00
Labor					$    336,000.00		$    336,000.00
Overhead					$    268,800.00			$    268,800.00
Total ending inventory					$ 1,143,800.00
Total costs accounted for					$ 6,681,500.00	$ 1,994,300.00	$ 2,604,000.00	$ 2,083,200.00

You've computed the equivalent units entirely correct, so I've completed the rest of the sum for you. Do let me know whether it's correct or not.