Question

1. Canler Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.
   
   
   g. Work in process, beginning: Units in process ........ Percent complete with respect to materials ..... Percent complete with respect to conversion.. 200 50% 40% Units started into production during the month. 11,000 Work in process, ending: Units in process ...... Percent complete with respect to materials ..... Percent complete with respect to conversion.. 500 80% 10%
   
   
   Required:
   
   Using the weighted-average method, determine the equivalent units of production for materials and conversion costs.

Assume a materials cost of $4.50/equivalent unit and conversion cost of $10/equivalent unit. Calculate the total value in ending WIP and inventory transferred out.

Answer 1

1
Work in Process, Beginning	200
Add: Units started during month	11000
Less: Work in Process, Ending	-500
Units completed and transferred out	10700
	Materials	Conversion
Units completed and transferred out	10700	10700
Work in process, ending:
500 X 80%	400
500 X 10%		50
Equivalent units of production	11100	10750
Equivalent units of production for materials	11100
Equivalent units of production for conversion costs	10750
2
	Materials	Conversion	Total
Work in process, ending units	400	50
X Cost per Equivalent unit	4.50	10.00
Cost of ending work in process inventory	1800	500	2300
	Materials	Conversion	Total
Units completed and transferred out	10700	10700
X Cost per Equivalent unit	4.50	10.00
Cost of units transferred out	48150	107000	155150
Total value in ending WIP	2300
Cost of inventory transferred out	155150