Question

The following data pertain to Tulsa Paperboard Company, a manufacturer of cardboard boxes. Work in process, February 1 10,000Units Direct Material $ 5,500 Conversion 17,000 Costs incurred during February Direct Material $ 110,000 Conversion 171,600 The equivalent units of activity for February were as follows: Direct material (Weighted - average method) 110,000 Conversion (Weighted - average method) 92,000 Completed and transferred out 90,000 Required: Compute the following amount using weighted -average process costing. 1. Cost of goods completed and transferred out during February. 2. Cost of the February 28 work-in-process inventory.

Answer 1

1 Cost of units completed and transferred during February $279,000 2 Cost of the February 28 Work-in-process Inventory $25,100 Working notes: Conversion Direct Material $5,500 $110,000 $115,500 110,000 $1.05 Costs $17,000 $171,600 $188,600 92,000 $2.05 EUP Cost per Equivalent unit of production Beginning WIP Cost added during the month Totals costs Divided by equivalent units of production Cost per equivalent unit (rounded to 2 decimals) Cost Assignment and Reconciliation: Cost of units completed and transferred out Direct materials Conversion Total costs transferred out Cost of ending work in process Direct materials Conversion Total cost of ending work in process Total cost accounted for EUP Cost per EUP 90,000 $1.05 90,000 $2.05 Total Cost $94,500 $184,500 $279,000 20,000 2,000 $1.05 $2.05 $21,000 $4,100 $25,100 $304,100