Question

part 3

Nonuniform Inputs, Weighted Average

Carter Inc. had the following production and cost information for its fabrication department during April (with materials added at the beginning of the fabrication process):

Production:
Units in process, April 1, 50% complete with respect to conversion	10,000
Units completed	65,200
Units in process, April 30, 60% complete	12,000
Costs:
Work in process, April 1:
Materials	$40,980
Conversion costs	14,600
Total	$55,580
Current costs:
Materials	$125,000
Conversion costs	210,000
Total	$335,000

Carter uses the weighted average method.

Required:

1. Prepare an equivalent units schedule.

Carter Inc.
Schedule of Equivalent Units
(Weighted Average Method)
			Materials		Conversion
Units completed
Add: Units in ending WIP x Percent complete
	×	%
	×	%
Equivalent units of output

2. Calculate the unit cost. Round all intermediate calculations and final answer to the nearest cent.
$per unit

3. Calculate the cost of units transferred out and the cost of EWIP. In your calculations round unit cost to the nearest cent and your final answers to the nearest dollar.

Cost transferred out	$
Cost of ending work in process

Answer 1

9 A B с 1 1 Carter Inc. Schedule of Equivalent Units 2 (Weighted Average Method) 3 Materials Conversion 4 Units completed 65.2001 65,200 5 Add: Units in ending WIP Percent complete 6 12,000 100% 12.000 7 12,000 x 60% 7.200 8 Equivalent units of output 77,200 72,400 9 10 2 11 Materials Conversion 12 Work in process, April 1 $40.980 $14,600 13 Current costs $125.000 $210,000 14 Total costs $165,980 $224,600 15 Equivalent units of output 77,200 72.400 16 Unit cost $2.15 $3.10 17 18 Total unit cost $5.25 per unit 19 20 3 21 Cost transferred out $342,300 22 Cost of ending work in process $48,120

Calculations are shown below: A B с 1 1 Carter Inc. Schedule of Equivalent Units 2 (Weighted Average Method) 3 Materials Conversion 4 Units completed =65200*100% =65200*100% 5 Add: Units in ending WIP Percent complete 6 12,000 x 100% =12000*100% 7 12.000 x 60% =12000*60% 8 Equivalent units of output =B4+B6 =C4+C7 9 10 2 11 Materials Conversion 12 Work in process, April 1 40980 14600 13 Current costs 125000 210000 14 Total costs =B12+B13 =C12+C13 15 Equivalent units of output I=B8 =C8 16 Unit cost =B14/B15 c14/C15 17 18 Total unit cost =B16+C16 19 20 3 21 Cost transferred out =B4*5.25 22 Cost of ending work in process 1=(B6*2.15)+(C7*3.1) per unit