Question

Savannah Textiles Company manufactures a variety of natural fabrics for the clothing industry. The following data pertain to the Weaving Department for the month of September.

Equivalent units of direct material (weighted-average method)		55,000
Equivalent units of conversion (weighted-average method)		47,000
Units completed and transferred out during September		45,000

The cost data for September are as follows:

Work in process, September 1
Direct material	$	91,900
Conversion		41,580
Costs incurred during September
Direct material	$	161,100
Conversion		254,520

There were 15,000 units in process in the Weaving Department on September 1 (100% complete as to direct material and 40% complete as to conversion).

Required:

Compute each of the following amounts using weighted-average process costing.

1. Cost of goods completed and transferred out of the Weaving Department.

2. Cost of the September 30 work-in-process inventory in the Weaving Department.

Answer 1

Cost of goods completed and transferred out of 1 the Weaving Department $490,500 Cost of the September 30 work-in-process 2 inventory in the Weaving Department $58,600 Working notes: Closing stock equivalent units Equivalent units Less: Units completed and transferred Closing stock equivalent units Direct Material Conversion 55,000 47,000 45,000 45,000 10,000 2,000 Cost per Equivalent unit of production Direct Material $91,900 $161,100 $253,000 costs 55,000 EUP $4.60 Conversion $41,580 $254,520 $296,100 47,000 $6.30 Costs EUP Beginning WIP Cost added during the month Totals costs Divided by equivalent units of production Cost per equivalent unit (rounded to 2 decimals) Total Costs to Account for: Beginning WIP Costs added during the month Total costs to account for Total costs accounted for Difference due to rounding off Cost Assignment and Reconciliation: Cost of units completed and transferred out Direct material Conversion Cost of units completed and transferred out Cost of ending work in process Direct material Conversion Cost of Ending work in process, Sep 30 Total cost accounted for $133,480 $415,620 $549,100 $549,100 $0 EUP Cost per EUP Total Cost 45,000 $4.60 $207,000 45,000 $6.30 $283,500 $490,500 10,000 2,000 $4.60 $6.30 $46,000 $12,600 $58,600 $549,100