Question

For the Weighted Average Question: Each product must pass through the Assembly Department and the Testing Department. The Tock Clock Company manufactures a single type of clock on a highly automated assembly line. Its costing system uses two cost categories, direct materials, and conversion costs. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Tock Clock Company uses weighted-average costing. Data for the Assembly Department for June 2020 are: Work in process, beginning inventory 250 units Direct materials (100% complete) Conversion costs (50% complete) 800 units 150 units Units started during June Work in process, ending inventory: Direct materials (100% complete) Conversion costs (75% complete) Costs for June 2020: Work in process, beginning inventory: Direct materials Conversion costs Direct materials costs added during June Conversion costs added during June What is the conversion cost per equivalent unit in June? $90.000 $135,000 $500.000 $500.000 $865.10 $945.18 оооо $627.16 $789.57

Answer 1

Option(C). $627.16 is the correct answer.

-----------------

1 Weighted Average Method-Equivalent production Unit Reconcilation Beginning Work in Process Inventory, Started this period Cost Charged to account for: Completed and Transferred out Ending Work in Process Inventory, Total units accounted for: 250 800 1,050 900 Balance 150 1,050 Equivalent units of production a. Completed and Transferred out Ending WIP Total UNITS Units % of Material EUP-Material %Conversion EUP -Conversion 900 100% 900 100% 900 150 100% 150 75% 113 1,050 1,050 1,013 b. Cost per Equivalent unit of production Beginning WIP Started Total Costs Div, Equivalent units Cost per Equivalent unit of production 250 800 1,050 EUP-Material $ 90,000 $ 500,000 $ 590,000 1,050 $ 561.90 EUP -Conversion $ 135,000 $ 500,000 $ 635,000 1,013 $ 627.16 $ 1,189.07 Costs Costs EUP EUP *Conversion Cost = Labor Cost + Overhead Cost

--------------------

*Weighted-Average Method:
*It calculates the equiavlent-unit cost of the work done to date and assigns this cost to equiavlent units
completed and transferred out of the process and to equivalent units in ending WIP inventory.
*The weighted-average cost is the total of all costs entering WIP account divided by total equivalent units
of work done to date.
*Equivalent units in Beginning WIP + Equivalent units of work done in current period = Equivalent units completed and transferred out in current period + Equivalent units in Ending WIP.
*Cost per Equivalent unit of production = Cost of beginning WIP + Started = Total Costs divided by Equivalent units.

----------------------------------------------------

If you have any queries/doubts,Immediately drop your messages in the comment box !!!! I will help you...
Thanks!!!