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During April, the first production department of a process manufacturing system completed its work on 380,000 units of a product and transferred them to the next department. Of these transferred units, 76,000 were in process in the production department at the beginning of April and 304,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 98,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion.

The production department had $1,278,951 of direct materials and $845,186 of conversion costs charged to it during April. Also, its April beginning inventory of $226,003 consists of $180,444 of direct materials cost and $45,559 of conversion costs.

1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)
2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.)
3. Using the weighted-average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

1 Answer Firstly we have to prepare the statement of equivalent Units 2 Statement of Equivalent Units Weighted Average Physical Units % Completion % Completion Direct Material Particulars 4 Conversion Cost 380000 5 Units completed and transferred out 380000 100 380000 100 Units in ending Inventory 83300 6 98000 85 35 34300 7 Total equivalent units 478000 463300 414300 Statement of cost per equivalent units Direct Material 10 Particulars Conversion Cost 11 Cost of beginning inventory 180444 45559 12 Cost incurred during the period 1278951 845186 13 Total cost 1459395 890745 14 No. of equivalent Units 15 Cost per equivalent Unit 414300 463300 3.15 2.15 17 Part 1) 18 Direct Material Cost Per Equivalent Unit 19 3.15 20 Part 2) 21 Convesrsion Cost Per Equivalent Unit 22 2.15 23 Part 3) 24 Cost of Units transferred to next department 2014000 25 (380000*(3.15+2.15)) 26 27 Cost of ending Work In Process 336140 28 (83300*3.15)+{34300*2.15)) 29