Question

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day: Beginning WIP inventory $ 980 557 Direct materials Conversion costs Current period costs Direct materials Conversion costs 27,220 16,803 Quantity information is obtained from the manufacturing records and includes the following Beginning inventory 80 0 units (65% complete as to materials, 56% complete as to conversion) Current period units started Ending inventory 5,900 units 1,500 units (45% complete as to materials, 15% complete as to conversion) value: 10.00 points Required information Compute the cost of goods transferred out and the ending inventory using the weighted-average method. (Do not round intermediate calculations.) Costs of goods transferred out Costs in ending inventory 45,521 S 4,339

Answer 1

Quantity Schedule

Opening WIP units 800

Transferred in 5900

Completed 5200

Ending inventory 1500

B) Calculation of equivalent units

Particulars	Direct Materials	Conversion Costs

Opening WIP    800      800

Current units introduced 5200 5200

Closing WIP 675 (45% of 1500) 225(15% of 1500)

Equivalent units 6675 6225

Cost per equivalent unit

Particulars	Direct Materials	Conversion Costs

Opening WIP cost 980 557

Current period costs 27220 16803

Total Cost 28200 17360

Equivalent units 6675 6225

Cost per equivalent unit 4.23 2.79

Cost of completed units

Complteted units   Material Cost   Conversion Cost

21996 14508

(4.23*5200) (2.79*5200)

Closing Stock 2855.25 627.75

(675*4.23) (225*2.79)