Question

00 Hi-Test Company uses the weighted average method of process costing to assign production costs to its products. Information for the company's first production process September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. 0.5 points Skipped $ 101,320 Work in process inventory, September 1 (2,000 units, 100% complete with respect to direct materials, 80% complete with respect to conversion; consists of $45,000 of direct materials cost, $56,320 conversion cost) Costs incurred in September Direct materials Conversion Work in process inventory, September 30 (7,000 units, 100% complete with respect to direct materials, 40% complete with respect to conversion) Units started in September Units completed and transferred out $375,000 $341,000 eBook 2 28,000 23,000 Hint Print Required: Compute each of the following using the weighted average method of process costing. 1. & 2. The number of equivalent units for materials and conversion for the month. 3. & 4. The cost per equivalent unit of materials and conversion for the month. 5. The total cost of goods transferred out. 6. The total cost of ending work in process inventory. 0 References Complete this question by entering your answers in the tabs below. Required 1 and 2 Required 3 and 4 Required 5 Required 6 The number of equivalent units for materials and conversion for the month. Equivalent Units of Production (EUP) Units % Materials EUP-Materials % Conversion EUP-Conversion Total < Required 1 and 2 Required 3 and 4

Answer 1

Solution

Statement of Equivalent Units(Weighted average)
		Material		Conversion
	Units	% Material	EUP-Material	% Conversion	EUP-Conversion
Complete/Transferred	23,000	100%	23,000	100%	23,000
Ending Inventory	7,000	100%	7,000	40%	2,800
Total	30,000	Total	30,000	Total	25,800

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Cost per Equivalent unit of Production	Direct Material	Conversion
Beginning work in process cost	$                     45,000.00	$         56,320.00
Cost added during september	$                   375,000.00	$      341,000.00
Total costs	$                   420,000.00	$      397,320.00
*Equivalent units of production	30,000	25,800
Cost per Equivalent unit of Production	$                              14.00	$                 15.40

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Cost Transferred Out	EUP	Cost per EUP	Total cost
Direct material	23000	$                 14.00	$        322,000.00
Conversion	23000	$                 15.40	$        354,200.00
Total transferred out			$        676,200.00

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Costs of Ending Work in Process	EUP	Cost per EUP	Total cost
Direct material	7000	$                 14.00	$          98,000.00
Conversion	2800	$                 15.40	$          43,120.00
Total Costs of Ending Work in Process			$        141,120.00