Question

QS 16-11 weighted average:cost per EUP LO C2

Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 11,900 units during November. The following production activity unit and cost information refers to the assembly department's November production activities. Assembly Department Beginning work in process Units transferred out Ending work in process Units 3,000 10,000 4,900 Percent of Direct Materials 70% 100% 80% Percent of Conversion 30% 100% 3ex Beginning work in process inventory-Assembly dept Costs added during the month: Direct materials Conversion $2,252 (consists of $1,509 for direct materials and $743 for conversion) $ 12,411 $ 22,197 es QS 16-11 Weighted average: Cost per EUP LO C2

Answer 1

Solution :

Cost per Equivalent Units

	Cost to be Allocated	/	Equivalent Units of Production	Cost per Equivalent Units of Production
Direct Material	$ 13,920	/	13,920	$ 1
Conversion	$ 22,940	/	11,470	$ 2

Working :

Equivalent Units of Production = Units Transferred + (Ending Inventory * % of Completion)

Material = 10,000 + (4,900 * 80%)

= 10,000 + 3,920

= 13,920.

Conversion = 10,000 + (4,900 * 30%)

= 10,000 + 1,470

= 11,470.

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