Question

Process Costing using the Weighted Average Method - Excel ? X - Sign In FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW 8 Calibri - 11 - Á A = % Paste B I U , - > - A Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles Clipboard Font B26 Hayword, Inc. uses weighted average costing and has two departments - mixing and packaging. 2 The following information relates to work in the mixing department for the month of July: 300 60% 40% 4 Work in process, July 1: Units in process 6 Percent completed with respect to materials Percent completed with respect to conversion Cost in the beginning inventory: Materials cost Conversion cost 11 Units started into production during the period 12 Costs added to production during the period: 13 Materials cost 14 Conversion cost 15 Work in process, July 31: 16 Units in process 17 Percent completed with respect to materials 18 Percent completed with respect to conversion $10,500 $6,750 6,200 $330,912 $406,408 450 40% 30% 20 Use the data to answer the following. 22 1. Compute equivalent units. Mixing Department Equivalent Units of Production 24 ................

Answer 1

1. Equivalent Units
		Mixing department
		Equivalent Units of Production
			Materials	Conversion
		Units transferred to the next department	6050	6050	(300+6200-450)
		Ending work in process:
		Material	180		(450*40%)
		Conversion		135	(450*30%)
		Equivalent units of Production	6230	6185
2. Compute cost per equivalent unit.
		Mixing department
		Cost per equivalent unit
			Materials	Conversion
		Cost of beginning work in process	$10,500	$6,750
		Cost added during the period	$330,912	$406,408
		Total Cost	$341,412	$413,158
		Equivalent Units of production	6230	6185
		Cost per Equivalent Unit	$54.80	$66.80
3. Assignment of Cost
		Mixing department
		Cost of Ending Work in Process Inventory and the units Transferred Out
			Materials	Conversion	Total
		Ending work in process inventory:
		Equivalent units of production	180	135
		Cost per equivalent unit	$54.80	$66.80
		Cost of ending work in process inventory	$9,864.23	$9,018.00
		Units completed and transferred out:
		Units transferred to the next department	6050	6050
		Cost per equivalent unit	$54.80	$66.80
		Cost of units transferred out	$331,547.77	$404,140.00
4. Reconciliation
		Mixing department
		Cost reconciliation
		Costs to be accounted for:
		Costs of beginning work in process inventory	$17,250
		Costs added to production during the period	$737,320
		Total cost to be accounted for	$754,570
		Costs accounted for as follows:
		Cost of ending work in process inventory	$18,882.23
		Cost of units transferred out	$735,687.77
		Total cost accounted for	$754,570.00

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