Question

3. Whiston Corporation uses the weighted average method in its process costing system. The following data were taken from the records of the first processing department for a recent month. 50% | Work in process, beginning: Units in process 40 Percent complete with respect to materials 60% Percent complete with respect to conversion Costs in the beginning inventory: Materials cost $6,200 Conversion cost $16,300 Units started into production during the month 190 Costs added to production during the month: Materials cost $42,390 Conversion cost $136,340 Work in process, ending: Units in process 30 Percent complete with respect to materials 50% Percent complete with respect to conversion 40% Required: a. How many units were transferred to the next department during the month? b. What were the equivalent units of production for materials and for conversion costs for the month? c. What were the costs per equivalent unit of production for materials and for conversion costs for the month? d. What was the cost of the ending work in process inventory in the department at the end of the month? e. What was the cost of the units completed and transferred to the next department during the month?

Answer 1

Answer a
Calculation of number of units transferred to the next department during the month
Units in process at the beginning	40
Add : Units started into production	190
Less : Units in process at the end	30
Number of units transferred to the next department during the month	200

Answer b

Calculation of equivalent units of production for Material cost and conversion for the month

	Physical Units	% complete of Material cost	Equivalent units of Material cost	% complete of Conversion cost	Equivalent units of Conversion cost
Units completed and transferred	200	100%	200	100%	200
Units in ending work in process	30	50%	15	40%	12
Equivalent Units of production			215		212
Equivalent Units of production for materials		215
Equivalent Units of production for conversion costs		212

Answer c

Calculation of cost per equivalent unit of production for Material and Conversion for the month

	Material	Conversion
Cost of beginning Work in process	$6,200.00	$16,300.00
Cost added during the month	$42,390.00	$136,340.00
Total Cost to account for	$48,590.00	$152,640.00
/ Equivalent Units of production	215	212
Cost per equivalent unit	$226.00	$720.00

Answer d

Calculation cost of ending work in process Inventory in the department at the end of the month

Cost of ending work in process Inventory
Material Cost [15 EU x $226]	$3,390
Conversion cost [12 EU x $720]	$8,640
Total Cost of ending work in process Inventory	$12,030

Answer e

Calculation cost of units completed and transferred to the next department during the month

Material Cost [200 EU x $226]	$45,200
Conversion cost [200 EU x $720]	$144,000
Total Cost of units completed and transferred out to the next department	$189,200