Question

3. Wilkens, Inc., uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow: The beginning work in process inventory was 90% complete with respect to materials and 50% complete with respect to labor and overhead. The ending work in process inventory was 80% complete with respect to materials and 20% complete with respect to labor and overhead. Units Work in process inventory, beginning Units started in process Units transferred out Work in process inventory, ending Costs added during the month $ 4,250 erhead $7,790 10,000 65,000 9,500Labor 66,000 9,000 $52,720 $21,514 $32,212 Required 1. Compute the first department's equivalent units of production for materials, labor, and overhead for the month. 2. Determine the first department's cost per equivalent unit for materials, labor, and overhead for the month.

Answer 1

Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv	Total
Opening WIP	10,000.00	100%	10,000.00	10,000.00	100%	10,000.00
Units started and completed = 65000 - 9000	56,000.00	100%	56,000.00	56,000.00	100%	56,000.00
Ending WIP	9,000.00	80%	7,200.00	9,000.00	20%	1,800.00
Equivalent Units			73,200.00			67,800.00
Opening WIP Costs			9,500.00			12,040.00	21,540.00
Current Month Costs			52,720.00			53,726.00	106,446.00
Total costs			62,220.00			65,766.00	127,986.00
Cost per Equivalent units			0.85			0.97	1.82