Question

Bedin.com Ch 16 Exercises Part 2 Saved Help Save & Exit Submit Check my work 5 Exercise 16-20 Weighted average: Process cost summary LO C3 Hi. Test Company uses the weighted average method of process costing to assign production costs to its products. Information for September follows. Assume that all materials are added at the beginning of its production process, and that conversion costs are added uniformly throughout the process. 222 work in process inventory, September 1 (2.000 units, 100% complete with respect to direct materials, on complete with respect to direct labor and overhead: includes 545,000 of direct materials cast, $25,6aa in direct labor cost, $30, 720 overhead cost Units started in September Unats completed and transferred to finished goods inventory Work in process inventory, September of units, 1004 complete with respect to direct materials, 404 complete with respect to direct labar and overhead) Costs incurred in Septesber Direct materials Conversion $121,320 28,000 23,000 $375,000 $341,000 Required: Compute each of the following, assuming Hi-Test uses the weighted average method of process costing. (Round "Cost per EUP" to 2 decimal places 1. The number of physical units that were transferred out and the number that are in ending work in process inventory 263. The number of equivalent units for materials and conversion for the month 485. The cost per equivalent unit of materials and conversion for the month 6. The total cost of goods transferred out 7. The total cost of ending work in process inventory Complete this question by entering your answers in the tabs below. Required 2 Required and 5 Regredo ered The number of physical units that were transferred out and the number that are in ending work in process inventory < Prev 5 of 9 Next >

Answer 1

Solution 1:

Reconciliation of Physical units
Beginning units	2000	Unit Completed	23000
Unit started	28000	Ending Units	7000
Total Units	30000	Total Units	30000

Solution 2 & 3:

Hi-Test Company
Computation of Equivalent unit of Production
Particulars	Physical Units	Material	Conversion
Units to account for:
Beginning WIP	2000
Started into Production	28000
Total units to account for	30000
Units accounted for:
Unit completed & Transferred out	23000	23000	23000
Units in ending inventory:	7000
Material (100%)		7000
Conversion (40%)			2800
Equivalent units of production	30000	30000	25800

Solution 4&5:

Hi-Test Company Computation of Cost per equivalent unit
Particulars	Material	Conversion	Total
Opening WIP	$45,000	$56,320	$101,320
Cost Added during Period	$375,000	$341,000	$716,000
Total cost to be accounted for	$420,000	$397,320	$817,320
Equivalent units of production	30000	25800
Cost per Equivalent unit	$14.00	$15.40

Solution 6 & 7:

Hi-Test Company Computation of Cost of ending WIP and units completed & transferred out
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	7000	2800
Cost per equivalent unit	$14.00	$15.40
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$98,000	$43,120	$141,120
Units completed and transferred	23000	23000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$322,000	$354,200	$676,200