Question

Calculate the cost per equivalent unit of material and conversion cost for January - using the Weighted Average Approach Units Materials Conversion Work in process January 1 2,500 50% 35% Work in process January 31 45% 25% Materials cost in work in process January 1 $25,000 Conversion costs in work in process January 1 $10,000 Units started in production 12,000 Units transferred to the next department 8,000 Materials cost added during January $20,000 Conversion costs added during January $7,500 Complete the grey cells that required information. Beginning Inventory Units Started this Period Units to be accounted for Direct Materials Conversion Costs Units in process January Units completed & transferred out 8000 8000 8000 (2500+12000-8000) Ending Inventory Units accounted for Direct Materials Conversion Costs Beginning Inventory Current Costs Total Costs Equivalent Units Materials Conversion Units completed and transferred out Work in process, January 31: Equivalent units of production in work in process Total Cost Materials Conversion Cost to be accounted for: Work in process, January 1 Costs added in January Total Cost Equivalent units Cost per equivalent unit

Answer 1

Step for solution
Step 1	Equivalent Units of production = Physical units multiplied by % of the competition
Step 2	Calculate the total cost to be accounted for
Step 3	Cost per Equivalent Unit = total cost to be accounted for / Equivalent Units of production
Step 4	Cost assigned to units transferred out = units completed and transferred out * Cost per Equivalent Unit
Step 5	Cost assigned to units ending work in progress = equivalent units in ending WIP inventory * Cost per Equivalent Unit

Company Name
Assembly Department production Report
Weighted average Method
Month ended January 31
Summary of Physical units
Units in beginning WIP inventory			2,500
Units started during month			12,000
Total unit to be accounted for			14,500
Units completed and transferred out			8,000
Units in ending WIP inventory (14500-8000)			6,500
Total unit accounted for			14,500
Equivalent Units of production
Particulars	Physical units	Direct material		Conversion Cost
		%	units	%	units
units in beginning WIP inventory	2500	100%	2500	100%	2500
Units in Started and completed (8000-2500)	5500	100%	5500	100%	5500
units in ending WIP inventory	6500	45%	2925	25%	1625
Equivalent Units of production			10,925		9,625
Summary of cost to be accounted
	Direct material	Conversion Cost	Total
Cost in beginning WIP	$             25,000	$             10,000	$             35,000
Cost incurred during Month (Add)	$             20,000	$               7,500	$             27,500
total cost to be accounted for	$             45,000	$             17,500	$             62,500
cost per Equivalent Unit
total cost to be accounted for	$             45,000	$             17,500
Divided by: Equivalent Units of production	10,925	9,625
Cost per Equivalent Unit	$          4.11899	$          1.81818	$          5.93717
Assign costs to units transferred out and units in ending WIP inventory
cost assigned to units transferred out
units completed and transferred out	8,000	8,000
Cost per Equivalent Unit	$          4.11899	$          1.81818
cost assigned to units transferred out	$             32,952	$             14,545	$             47,497
cost assigned to units ending work in progress
equivalent units in ending WIP inventory	2,925	1,625
Cost per Equivalent Unit	$          4.11899	$          1.81818
cost assigned to units ending work in progress	$             12,048	$               2,955	$             15,003
Total cost assigned			$             62,500