Question

Required information [The following information applies to the questions displayed below.] Zia Co. makes flowerpots from recycled plastic in two departments, molding and packaging. At the beginning of the month, the molding department has 2,200 units in inventory, 70% complete as to materials. During the month, the molding department started 19,000 units. At the end of the month, the molding department had 3,300 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 $ 1,400 29,900 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 Total costs assigned 0

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units			2,200
Add: Units Started in Process			19,000
Total Units to account for:			21,200
UNITS TO BE ACCOUNTED FOR:
Units completed and transferred out		17,900
Ending Work in Process			3,300
Total Units to be accounted for:		21,200
Equivalent Units:
			UNITS	Material Cost
				% Completion	Units
Units Completed and transferred	17900	100%	17,900
Ending Work in Process	3300	80%	2,640
Total Equivalent units	21200		20,540
TOTAL COST TO ACCOUNT FOR:
				Material
Cost of Beginning WIP		1,400
Cost added during the period		29900
Total Cost to account for:		31,300
Equivalent Units			20,540
Cost per Equivalent unit		1.524
Final Answer:
Cost of Units transferred out
	Material (17900*1.524)	27280
Cost of Ending Work in process
	Material (2640*1.524)	4020
Total Cost assigned			31300