Question

Refer to the following information about the Assembly Department in the Honey Bee Factory for the month of July. Honey Bee Factory uses the weighted average method of inventory costing. 6,000 units Beginning Work in Process inventory: Physical units (completed in July) % complete for materials % complete for conversion (labor and overhead) 80% 30% Materials Cost from June $8,125 Conversion cost from June $6,540 30,000 units 7,000 units Products started and completed in July: Physical Units Ending Work in Process Inventory: Physical Units % complete for materials % complete for conversion Manufacturing costs incurred for July: Materials 70% 40% $84,690 Conversion $101,810

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units			6,000
Add: Units Started in Process			37,000
Total Units to account for:			43,000
UNITS TO BE ACCOUNTED FOR:
Units completed and transferred out		36,000
Ending Work in Process			7,000
Total Units to be accounted for:		43,000
Equivalent Units:
			UNITS	Material Cost	Conversion
				% Completion	Units	% Completion	Units
Units completed and transferrd out	36000	100%	36,000	100%	36,000
Ending Work in Process	7000	70%	4,900	40%	2,800
Total Equivalent units	43000		40,900		38,800
Cost per Equivalent unit
				Material		Conversion
Cost of Beginning WIP inventory	8125		6540
Cost Added during July		84,690		1,01,810
Total Cost to account for:		92,815		1,08,350
Equivalent Units			40,900		38,800
Cost per Equivalent unit		2.27		2.79
TOTAL COST ACCOUNTED FOR:
Units completed (36,000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				36,000	2.27	81720
Conversion Cost			36,000	2.79	100440
Total cost of units transferred out						182160
Ending Work in process (7000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				4,900	2.27	11123
Conversison Cost			2,800	2.79	7812
Total cost of Ending Work in process:			18,935
FINAL ANSWER
Req 1.
EUP for DM: 40,900 EUP
EUP for Conversion: 38,800 EUP
Req 2.
Cost per EUP for DM:	2.27	per EUP
Cost per EUP for conversion:	2.79	per EUP
Req 3.
Total cost assigned to Units complted and transferred out:	1,82,160
Req 4.
DM added to ending WIP:		11,123
Conversion cost added to ending WIP:	7,812
Total cost assigned to ending WIP	18,935