Question

Question 27 Materials costs of $485000 and conversion costs of $230950 were charged to a processing department in the month of September. Materials are added at the beginning of the process; conversion costs are incurred uniformly throughout the process. There were no units in beginning Work in Process, 97000 units were started into production in September, and there were 7700 units in ending Work in Process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September if the weighted-average method is used? $380300 $669750 $618950 $383380

Answer 1

step 1:

Computation of equivalent units of production:

Units to be accounted for:	Total units	Material	Conversion cost
Units completed and transferred out	89,300	89,300	89,300
Ending work in process	7,700	7,700	3,080 (7,700 40%)
Total units to be accounted for	97,000	97,000	92,380

step 2:

Computation of cost per unit:

	Total cost	Equivalent units	Cost per equivalent units
Material cost	$485,000	97,000	$5
Conversion cost	$230,950	92,380	$2.5

step 3:

Statement showing distribution of cost to Units completed and transferred out:

	Equivalent units	Cost per unit	Total cost
Units completed and transferred out:
Material	89,300	$5	$446,500
Conversion cost	89,300	$2.5	$223,250
Total manufacturing cost			$669,750