Question

[The following information applies to the questions displayed below.] The Matsui Lubricants plant uses the weighted average method to account for its work-in-process inventories. The accounting records show the following information for a particular day. 955 482 Beginning WIP inventory Direct materials Conversion costs Current period costs Direct materials Conversion costs 21,190 12,559 Quantity information is obtained from the manufacturing records and includes the following. Beginning inventory Current period units started Ending inventory 550 units (70% complete as to materials, 56% complete as to conversion) 5,400 units 1,600 units (50% complete as to materials, 30% complete as to conversion) Compute the cost of goods transferred out and the ending inventory using the weighted average method. (Do not round intermediate calculations.) Costs of goods transferred out Costs in ending inventory

Answer 1

Cost of goods transferred out = $30,450
Cost of ending inventory = $4,736

	Physical units	Material	Conversion
Units to account for
Work in Process Beginning	550
Started during the period	5400
Total units to account for	5950
Units Accounted for
Completed and transferred	4350	4350	4350
Work in Process Ending	1600	800	480
Total Units Accounted for	5950
Equivalent units		5150	4830
	Material	Conversion	Total
Cost of Beginning Work in Process	$             955	$             482	$          1,437
Cost added during the period	$        21,190	$        12,559	$        33,749
Total Cost to account for	$        22,145	$        13,041	$        35,186
Equivalent units of Production	5150	4830
Cost per equivalent unit	$            4.30	$            2.70	$            7.00
	Material	Conversion	Total
Cost of Beginning Work in Process	$        54,000	$        42,000	$        96,000
Cost added during the period	$      112,500	$      210,000	$      322,500
Total Cost to be accounted for	$     166,500	$     252,000	$     418,500
	Material	Conversion	Total
Units Completed and transferred out
Units transferred to next department	4350	4350
Cost per equivalent unit	$            4.30	$            2.70
Cost of units transferred out	$        18,705	$        11,745	$        30,450
	Material	Conversion	Total
Ending work in Process Inventory
Equivalent units of Production	800	480
Cost per equivalent unit	$            4.30	$            2.70
Cost of Ending work in Process Inventory	$          3,440	$          1,296	$          4,736
Total Costs Accounted for	$        22,145	$        13,041	$        35,186

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