Question

E4-3A. Equivalent Units and Product Cost Report—Weighted Average Method In its first month’s operations (January 2019), Schramski Company’s Department 1 incurred charges of $120,000 for direct materials (10,000 units), $29,875 for direct labor, and $58,000 for manufacturing overhead. At month-end, 9,000 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costs.

Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:

a.) The equivalent units of materials and conversion costs.

b.) The cost per equivalent unit of materials and conversion costs.

Schramski Company Equivalent Units Calculations, January 2019 Where do the units come from? Where do the units go? % Work Done? Equivalent Units Direct % Work Materials Done? Conversion Costs Beginning Inventory Started Total Complete Transferred Ending Inventory Total a ( Product Cost Report Where do the costs come from? Total Direct Materials Conversion Costs Beginning Inventory Current Total Costs to Account For $ = Total Equivalent Units Average cost / Equivalent unit b. Please provide your answer by fillig in each box

Answer 1

G Conversion Costs 9000 250 А B с D E F H 1 Schramski Company 2 Equivalent Units Calculations, January 2019 3 Equivalent Units % Work Direct % Work 4 Where do the units come from? Where do the units go? done Materials Done 5 Beginning inventory Complete/Transferred 9,000 100% 9000 100% 6 Started 10,000 Ending inventory b. 1,000 100% 1000 25% 7 10,000 Total 10,000 10000 a. 8 Production Cost Report Conversion Where do the costs come from? Total Direct Materials 9 Costs 10 Beginning inventory $ $ $ 11 Current $ 207,875$ 120,000 $ 87,875 12 Total costs to account for $ 207,875$ 120,000 $ 87,875 13 Total equivalent units 10,000 9,250 14 Average cost / Equivalent unit 22 $ 12.00 b. $ 9.50 b. 9250 a. 8 $

А B F H 1 J 1 с D E Schramski Company Equivalent Units Calculations, January 2019 2 3 Equivalent Units Direct Materials =+D5*E5 4 Where do the units come from? Where do the units go? % Work done 5 Beginning inventory JO Complete/Transferred 9000 1 6 Started 10000 Ending inventory b. =+D7-D5 1 7 =+B5+B6 Total =+B7 8 Production Cost Report % Work Done Conversion Costs 1 =+F5*H5 0.25 =+F6*H6 =+D6*E6 =+F5+F6 a. =+15+16 a. Where do the costs come from? Total Direct Materials Conversion Costs 9 0 0 0 0 10 Beginning inventory 11 Current 12 Total costs to account for 13 Total equivalent units 14 Average cost / Equivalent unit =+C11+E11 120000 =+B10+B11 =+C10+C11 =+F7 =+C14+E14 =+C12/C13 =29875+58000 =+E10+E11 =+17 =+E12/E13 b. b.