Question

The Cutting Department of Cassel Company has the following production and cost data for July. 1. 2. Production Transferred out 14,100 units. Started 4,400 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31. Costs Beginning work in process Materials Labor Manufacturing overhead $0 63,825 17,328 19,500 Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production e Textbook and Media

Answer 1

*Weighted-Average:
*It calculates the equiavlent-unit cost of the work done to date and assigns this cost to equiavlent units
completed and transferred out of the process and to equivalent units in ending WIP inventory.
*The weighted-average cost is the total of all costs entering WIP account divided by total equivalent units
of work done to date.
*Equivalent units in Beginning WIP + Equivalent units of work done in current period = Equivalent units completed and transferred out in current period + Equivalent units in Ending WIP.
*Cost per Equivalent unit of production = Cost of beginning WIP + Started = Total Costs divided by Equivalent units.

Materials 18,500 Conversion 16,740 Toatl Equivalent units of Production Unit Cost: Materials Conversion Costs $ $ 3.45 2.20 $ $ 100,653 $ Cost Reconcilation Costs to be accounted for: Cost of beginning WIP Cost added to production during the period Total Cost to be accounted for: Costs accounted for: Transferred out Work in Process, July 31 Materials Conversion Costs Total Costs $ 79,665 $ 15,180 $ 5,808$ $ 20,988 100,653

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Workings:

Weighted Average Method: Equivalent units of production Transferred Out Ending WIP Total Equivalent units of Production Units 14,100 4,400 18,500 % of Material EUP-Material %Conversion EUP-Conversion 100% 14,100 100% 14,100 100% 4,400 60% 2,640 18,500 16,740 Cost per Equivalent unit of production Beginning WIP Started Total Costs Div, Equivalent units Cost per Equivalent unit of production EUP-Material $ $ 63,825 $ 63,825 18,500 $ 3.45 EUP -Conversion $ $ 36,828 $ 36,828 16,740 $ 2.20 $ Costs Costs EUP EUP 5.65 Total costs accounted for: Cost of units transferred out: Direct Material Conversion cost EUP Cost per EUP Total costs 14,100 $ 3.45 $ 48,645 14,100 $ 2.20 $ 31,020 $ 79,665 Cost of Ending WIP: Direct Material Conversion cost EUP Cost per EUP Total costs 4,400 $ 3.45$ 15,180 2,640 $ 2.20 $ 5,808 $ $ 20,988 100,653 Total costs accounted for

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