Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.
The second department (Polishing) had the following physical flow schedule for December:
Units to account for: | ||
Units, beginning work in process | 4,000 | (40% complete) |
Units started | ? | |
Total units to account for | ? | |
Units accounted for: | ||
Units, ending work in process | 8,000 | (50% complete) |
Units completed | ? | |
Units accounted for | ? |
Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $7,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $47,000; and transferred in, $40,000.
Required:
1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. Enter percentages as whole numbers.
Direct Materials | Conversion Costs | Transferred In | |
Units completed | |||
Ending WIP: | |||
x % |
|||
x % |
|||
Total equivalent units |
Feedback
To calculate equivalent units, weighted average counts prior-period output in BWIP as belonging to the current period. So all completed units are treated as output of the current period.
2. Compute the unit cost for the month. If
required, round your answer to the nearest cent.
$ per equivalent unit
Feedback
The weighted average method counts prior-period work and costs in BWIP as if they belong to the current period; so the unit cost is obtained by dividing the sum of the costs in BWIP and the current-period costs by the weighted average equivalent output. The resulting unit cost is a blend of the prior-period unit cost and the actual current-period unit cost.
Feedback
Partially correct
Ques 1 | ||||
Direct materials | Conversion costs | Transferred in | ||
Units completed | 12000 | 12000 | 12000 | |
Ending WIP | ||||
8000 | 100% | 8000 | ||
8000 | 50% | 4000 | 4000 | |
Total equivalent units | 16000 | 16000 | 20000 | |
Ques 2 | ||||
DM | Conversion | Trans-in | Total | |
BWIP Costs | 5,000 | 7,000 | 8,000 | 20,000 |
Costs added | 32,000 | 47,000 | 40,000 | 119,000 |
Total costs | 37,000 | 54,000 | 48,000 | 139,000 |
Divided by equivalent units | 16,000 | 16,000 | 20,000 | |
$ 2.31 | $ 3.38 | $ 2.40 | $ 8.09 | |
per DM EQU | per conv EQU | per trans in EQU | per EQU unit |
Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes...
Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Units to account for:...
Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Units to account for:...
FIFO Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Units to account for: Units,...
FIFO Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Units to account for: Units,...
Weighted Average Method, Equivalent Units, Unit Cost, Multiple DepartmentsFordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.The second department (Polishing) had the following physical flow schedule for December:Units to account for: Units, beginning work in...
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Cost Information and the Weighted Average Method Morrison Company had the equivalent units schedule and cost information for its Sewing Department for the month of December, as shown below. Direct Materials Conversion Costs Units completed 45,000 45,000 Add: Units in ending work in process x Percentage complete: 10,000 ~ 100% direct materials 10,000 10,000 x 45% conversion materials 4,500 Eqivalent units of output 55,000 49,500 Costs: Work in process, December 1: Direct materials $66,000 Conversion costs 14,000 Total work in...
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