Question

2. Bachelet Inc. uses the weighted average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. 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 400 90 40P 756 4,448 Units started into production during the month 13,000 Units completed and transferred out 13,000 Costs added to production during the month: Materials cost 29,949 Conversion cost $362,127 Work in process, ending: Units in process 10d Percent complete with respect to materials 50 Percent complete with respect to conversion 30 Required: Using the weighted-average method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs. c. Determine the cost of units transferred out of the department during the month. d. Determine the cost of ending work in process inventory in the department

Answer 1

Answer:

a)
	Materials	Conversion costs
Units completed and transferred out	13,000	13,000
Work in process, ending:
100 X 50%	50
100 X 30%		30
Equivalent units of production	13,050	13,030
b)
	Materials	Conversion costs
Work in process, beginning	756	4,448
Cost added during month	29,949	362,127
Total costs	30,075	366,575
Divide by Equivalent units of production	13,050	13,030
Cost per Equivalent unit	2.30	28.13
c)
	Materials	Conversion costs	Total
Units completed and transferred out	13,000	13,000
X Cost per Equivalent unit	2.30	28.13
Cost of Units transferred out	29,900	365,690	395,590
Cost of Units transferred out	395,590
d)
	Materials	Conversion costs	Total
Work in process, ending units	50	30
X Cost per Equivalent unit	2.30	28.13
Cost of ending work in process inventory	115	844	959
Cost of ending work in process inventory	959