Question

Use the following information for the Exercises below. [The following information applies to the questions displayed below.] During April, the first production department of a process manufacturing system completed its work on 300,000 units of a product and transferred them to the next department. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.

Exercise 16-9 Weighted average: Costs assigned to output and inventories LO C2

The production department had $850,368 of direct materials and $649,296 of conversion costs charged to it during April. Also, its April beginning inventory of $167,066 consists of $118,472 of direct materials cost and $48,594 of conversion costs.


1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)
2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)
3. Using the weighted-average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Exercise 16-9 Weighted average: Costs assigned to output and inventories LO C2

The production department had $850,368 of direct materials and $649,296 of conversion costs charged to it during April. Also, its April beginning inventory of $167,066 consists of $118,472 of direct materials cost and $48,594 of conversion costs.


1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)
2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)
3. Using the weighted-average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

1 and 2
Equivalent units of production (EUP)- weighted average method
	Units	% Materials	EUP-Materials	% Conversion	EUP-Conversion
Units completed and transferred out	300000	100%	300000	100%	300000
Ending work in process	82000	80%	65600	30%	24600
Equivalent units of production	382000		365600		324600
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			118472		48594
Costs incurred this period			850368		649296
Total costs		Costs	968840	Costs	697890
÷ Equivalent units of production		EUP	365600	EUP	324600
Cost per equivalent unit of production			2.65		2.15
3
Total costs to account for:
Direct materials-prior period	118472
Direct materials-current period	850368
Conversion-prior period	48594
Conversion-current period	649296
Total costs to account for	1666730
Total costs accounted for	1666730
Difference due to rounding cost/unit	0
Cost assignment and reconciliation:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	300000	2.65	795000
Conversion	300000	2.15	645000
Total cost transferred out				1440000
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	65600	2.65	173840
Conversion	24600	2.15	52890
Total Cost of ending work in Process				226730
Total cost accounted for				1666730