Question

Equivalent Units and Product cost Report-Weighted Average Method

The following data (and annotations) are for Joyner Company's processing department work-in-process account for the month of June 2019:

Beginning inventory (700 units, 40% complete)
Direct materials		$29,050
Conversion costs		79,420
Current period
Direct materials (5,000 units)		350,000
Direct labor		596,000
Manufacturing overhead applied		378,000

Joyner uses the weighted average method. Materials are added at the beginning of the process and conversion costs are incurred evenly throughout. Ending work-in-process is composed of 900 units, 70% complete. Compute the following:

a. Equivalent units for materials and conversion.

b. Cost per equivalent unit for materials and conversion.

c. Total cost assigned to the units transferred out.

						Equivalent Units
Where do the units come from?			Where do the units go?			% Work Done?	Direct Materials		% Work Done?	Conversion Costs
Beginning Inventory	Answer		Complete/Transferred	Answer		Answer	Answer		Answer	Answer
Started	Answer		Ending Inventory	Answer		Answer	Answer		Answer	Answer
Total	Answer		Total	Answer			Answer	a.		Answer	a.

Product Cost Report
Where do the costs come from?			Direct Materials		Conversion Costs
Beginning Inventory	Answer		Answer		Answer
Current	Answer		Answer		Answer
Total Costs to Account For	Answer		Answer		Answer
÷ Total Equivalent Units			Answer		Answer
Average cost / Equivalent unit			Answer	b.	Answer	b.
Where do the costs go?
Complete / Transferred:
Direct Materials		Answer
Conversion costs		Answer
Costs of Goods Manufactured		Answer	c.
Ending Inventory:
Direct Materials		Answer
Conversion costs		Answer
Cost of Ending Inventory		Answer
Total Costs Allocated		Answer

Answer 1

Equivalent Units
Where do the units come from?			Where do the units go?			% Work Done?	Direct Materials		% Work Done?	Conversion Costs
Beginning Inventory	700		Complete/Transferred	4800		100%	4800		100%	4800
Started	5000		Ending Inventory	900		100%	900		70%	630
Total	5700		Total	5700			5700			5430	a.

Product Cost Report
Where do the costs come from?			Direct Materials		Conversion Costs
Beginning Inventory	108470		29050		79420
Current	1324000		350000		974000
Total Costs to Account For	1432470		379050		1053420
÷ Total Equivalent Units			5700		5430
Average cost / Equivalent unit			66.50		194
Where do the costs go?
Complete / Transferred:
Direct Materials		319200
Conversion costs		931200
Costs of Goods Manufactured		1250400	c.
Ending Inventory:
Direct Materials		59850
Conversion costs		122220
Cost of Ending Inventory		182070
Total Costs Allocated		1432470