Question

Case +19 Second Department wekytted Average Method (L04 2,043,1014] think we gooted when weered the new assistant controllers Ruth Sano, president of Promotionless report that he prepared for last month for the Fishing Dep . Tam understand look at tt $ 8,612 Finishing Department costs Work in process inventory, April 1,50 units; materials 100% complete; conversion 6 complete Casts transferred in during the month from the preceding department, 2,550 units Materials cast added during the month Conversion costs incurred during the month Total departmental costs 27,856 11,250 23,640 $71,358 Finishing Department costs assigned to: Units completed and transferred to finished goods, 3,698 units at $23.790 per unit Work in process inventory, April 30, 680 units; materials ex complete; conversion 48% complete Total departmental costs assigned $71,358 $71,358 *Consists of cost transferred in, $4,292, materials cost, $2,040, and conversion cost $2.280. "He's struggling to leam our system, replied Frank Harrop, the operations manager. "The problem is that he's been away from process costing for a long time, and it's coming back slowly." It's not just the format of his report that I'm concerned about. Look at that $23.790 unit cost that he's come up with for April Doesn't that seem high to you?" said Ms. Scarpino. "Yes, it does seem high but on the other hand, I know we had an increase in materials prices ouring April, and that may be the explanation replied Mc Harrop. 'T'll get someone else to redo this report and then we can see what's going on." Provost industries manufactures a ceramic product that goes through two processing departments-Molding and Finishing. The company uses the welghted average method in its process costing. Required: 1-a. Calculate the equivalent units of production 1-6. Calculate the cost per equivalent unt. (Round your answers to 2 decimal places.) 7-C. How much cost should have been assigned to the ending work in process Inventory (Round your intermediate calculations to 2 decimal places.) 1-0. How much COST Should have been assigned to the units completed and transferred to finished 990057 (Round your intermediate calculations to 2 decimal places.

Answer 1

1a
	Transferred In costs	Materials	Conversion
Units completed and transferred out	3000	3000	3000
Work in process, ending	600	0	240
Equivalent units of production	3600	3000	3240
1b
	Transferred In costs	Materials	Conversion
Work in process, April 1	4292	2040	2280
Cost added during month	27856	11250	23640
Total costs	32148	13290	25920
Divide by Equivalent units of production	3600	3000	3240
Cost per Equivalent unit	8.93	4.43	8.00
1c
	Transferred In costs	Materials	Conversion	Total
Work in process, ending units	600	0	240
X Cost per Equivalent unit	8.93	4.43	8.00
Cost of ending work in process inventory	5358	0	1920	7278
1d
	Transferred In costs	Materials	Conversion	Total
Units completed and transferred out	3000	3000	3000
X Cost per Equivalent unit	8.93	4.43	8.00
Cost of Units completed and transferred out	26790	13290	24000	64080