Question

Hello! Will someone please help me solve this problem? I cannot figure it out and could use some assistance.

Unit Cost and Cost Assignment, Nonuniform Inputs Loran Inc. had the following equivalent units schedule and cost for its fabrication department during September: Materials Conversion Units completed 180,000 180,000 Add: Units in ending WIP x Fraction complete 72,000 41,040 (72,000 x 57%) Equivalent units of output 252,000 221,040 Costs: Work in process, September 1: Materials $147,000 Conversion costs 7,875 Total $154,875 Current costs: Materials $1,156,000 Conversion costs 283,445 Total $1,439,445 Required:

Answer 1

Solution

	Cost per equivalent Unit
Material	$ 5.17
Conversion	$ 1.32
Total unit cost	$ 6.49

.

Transferred out	$          1,167,946
Work in process, June 30	$             426,374

Working

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 147,000	$ 7,875	$ 154,875
Cost incurred during period		$ 1,156,000	$ 283,445	$ 1,439,445
Total Cost to be accounted for		$ 1,303,000	$ 291,320	$ 1,594,320
Total Equivalent Units		252,000	221,040
Cost per Equivalent Units		$                   5.17	$                     1.32

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 5.17	72,000	$        372,285.71	180,000	$ 930,714
Conversion cost	$ 1.32	41,040	$          54,088.73	180,000	$        237,231.27
TOTAL	$ 1,594,320	TOTAL	$ 426,374	TOTAL	$ 1,167,946