Question

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October: Percent Completed Units Materials Conversion Work in process, October 1 53,000 90 % 60 % Work in process, October 31 40,000 73 % 53 % The department started 395,000 units into production during the month and transferred 408,000 completed units to the next department.

Required: Compute the equivalent units of production for October.

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October:

		Percent Completed
	Units	Materials		Conversion
Work in process, October 1	53,000	90	%	60	%
Work in process, October 31	40,000	73	%	53	%

The department started 395,000 units into production during the month and transferred 408,000 completed units to the next department.

	Materials Conversion Equivalent units of production

Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below:

	Materials		Labor		Overhead
Work in process, May 1	$	27,100	$	44,154	$	215,019
Cost added during May	$	164,605	$	29,436	$	143,346
Equivalent units of production		2,300		2,200		2,100

Required:

Compute the cost per equivalent unit for materials, labor, overhead, and in total. (Round your answers to 2 decimal places.)

	Materials Labor Overhead Total Cost per equivalent unit

Required:

Compute the equivalent units of production for October.

Answer 1

Question 1

Solution

	Material	Conversion
Equivalent Units of Production	437,200	429,200

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	408,000			100%	408,000	100%	408,000
Ending WIP	40,000			73%	29,200	53%	21,200
Total	448,000			Total	437,200	Total	429,200

In weighted average method the units in beginning and there completion % are ignored.

Question 2

Solution

	Material	Labor	Overhead
Cost per Equivalent unit	$                 83.35	$                33.45	$             170.65

Working

	Material	Labor	Overhead
Work in process beginning (A)	$         27,100.00	$        44,154.00	$     215,019.00
Cost added during may (B)	$       164,605.00	$        29,436.00	$     143,346.00
Total Cost (C=A+B)	$       191,705.00	$        73,590.00	$     358,365.00
Equivalent units of production (D)	2,300	2,200.0	2,100
Cost per Equivalent unit (C/D)	$                 83.35	$                33.45	$             170.65