Question

You are required to complete the process account using the weighted average method.

Opening WIP	5,000 units	fully complete re materials 25% complete re conversion Total value $16,500- of which $14,000 represents materials and $2,500 represents conversion costs
During period		26,000 units started 24,000 units completed and transferred Materials cost in period           $82,100 Conversion costs in period $56,720
Closing WIP	7,000 units	fully complete re materials 60% complete re conversion
Required        Complete the Process Account using: Weighted average method

Answer 1

Answer:

Process account
Particulars	Units	Rate	Amount	Particulars	Units	Rate	Amount
Opening WIP	5,000	$      3.30	$   16,500.00	Next process (3.1+2.1)*24000	24,000	$      5.20	$ 124,800.00
Material	26,000		$   82,100.00	Closing WIP	7,000		$   30,520.00
Conversion Cost			$   56,720.00
	31,000		$ 155,320.00		31,000		$ 155,320.00

Calculations:

Statement of Equivalent Production
Input	Particulars	Output	Material		Conversion cost
			%	Units	%	Units
31,000	Put and processed	24,000	100%	24,000	100%	24,000
	Closing stock	7,000	100%	7,000	60%	4,200
31,000	Total	31,000		31,000		28,200
	Costs:
	Opening		$                    14,000		$                       2,500
	February		$                    82,100		$                    56,720
	Total		$                    96,100		$                    59,220
	Cost per unit		$                         3.10		$                         2.10

Value of Cosing stock =(7,000 * 3.1) + (4,200*2.1) = $ 30,520

In case of any doubt, please comment.