Question

2. Mickey Mouse Company had zero units in its Work in Process Inventory. During the period it completed and transferred out 25,000 units and there were 5,000 units left in work in process inventory. The ending work in process were 100 % complete in materials and 40% complete as to conversion cost.

Required: i. How many units were in production during the period?

ii. Compute equivalent units for Materials and Conversion Cost under the Weighted Average Method.

iii. If total Materials Costs is $90,000 and total Conversion cost is $142,000 at the end of the period.

Compute: a. The Cost of Goods completed and transferred out. b. The total cost of Ending Work in Process Inventory.

Answer 1

Answer No.:	Mickey MOUSE Company
		Actual Units
	Calculation of Physical UNITS:
	Units in beginning inventory	0
1)	Units started during the period	30000
	Units to be accounted for	30000
		Actual Units	Equivalent Units
			Material	CC
	Units Completed and Transferred	25000	25000	25000
	Units in ending inventory	5000	5000	2000
2)	Equivalent Units	30000	30000	27000
	Costs:
			Material	CC	Total
	Costs in beginning inventory		0	0	0
	Cost added during the year		90000	142000	232000
	Total cost to account for		90000	142000	232000
	Equivalent Units from above		30000	27000
	Cost per equivalent unit		3.00	5.26
			Material	CC	Total
	Cost Accounted for
3-a)	Units completed and transfer		75000	131,481	206,481
3-b)	Units in ending inventory		15000	10,519	25,519
	Total Cost Accounted for		90000	142,000	232,000