Question

3. Whiston Corporation uses the weighted average method in its process costing system. The following data were taken from the records of the first processing department for a recent month. 40 60% 50% Work in process, beginning: Units in process Percent complete with respect to materials Percent complete with respect to conversion Costs in the beginning inventory: Materials cost Conversion cost Units started into production during the month Costs added to production during the month: Materials cost Conversion cost Work in process, ending: Units in process Percent complete with respect to materials Percent complete with respect to conversion $6,200 $16,300 190 $42,390 $136,340 30 50% 40% Required: a. How many units were transferred to the next department during the month? b. What were the equivalent units of production for materials and for conversion costs for the month? c. What were the costs per equivalent unit of production for materials and for conversion costs for the month? d. What was the cost of the ending work in process inventory in the department at the end of the month? e. What was the cost of the units completed and transferred to the next department during the month?

Answer 1

a.

Units transferred to next department = 40 + 190 - 30 = 200 units

b.

		Equivalent units
	Physical units	Material	Conversion
Units completed and transferred	200	200	200
Units in ending work in process	30	15 (30*50%)	12 (30*40%)
Total	230	215	212

c.

	Material	Coversion
Cost in beginning work in process	$6,200	$16,300
Cost added during the month	42,390	136,340
Total costs	$48,590	$152,640
Equivalent units	215	212
Cost per equivalent units	$226	$720

d.

Cost of ending work in process:

Material (15*$226)	$3,390
Conversion (12*$720)	8,640
Total costs	$12,030

e.

Cost of units completed and transferred:

Material (200*$226)	$45,200
Conversion (200*$720)	144,000
Total costs	$189,200