Question

The cutting department is the first department of Shoe Maker, LLC. On March 1, 2019, the beginning inventory in this department consisted of 580 units. Costs for the beginning work in process were as follows:

Materials (100% complete)	$	5,800
Labor (70% complete)		3,800
Overhead (70% complete)		2,800

During March 2019, 2,300 units were started into production with the following costs:

Materials	$	24,152
Labor		15,800
Overhead		15,296

The number of units completed and sent to the finishing department was 2,400. The ending inventory of 480 units was 100 percent complete with regard to materials, 80 percent complete with regard to labor and overhead.

1. Compute the March equivalent production for materials for Shoe Maker, LLC.
2. Compute the cost per equivalent unit for materials for March.
3. Compute the cost of materials in the work transferred out of the department during the month.
4. Compute the month-end cost of materials in the ending work in process.

1.

Equivalent units for materials
Materials
Units Completed
Ending WIP-materials
Materials equivalent units

2.

Choose Numerator		Choose Denominator
				Cost per equivalent unit for materials
	/		=

3.

Units Completed
Cost per equivalent units for materials
Cost of materials goods transferred to next department	$

4.

Cost of materials
Opening work in progress
Purchases
Cost of materials goods transferred to next department
Ending work in progress

Answer 1

Weighted average method has been followed.

Shoe Maker LLC Weighted Average Method: Equivalent Units Conversion costs DM % Whole units Units % Units Opening WIP 580 Started 2300 Total Units to account for 2880 Completed and tfd. Closing WIP Total Units 2400 100 2400 100 2400 480 100 480 80 384 to account for 2880 2880 2784 Cost Information Costs to account for: Materials Conversion Total Op. WIP Added during the period 5800 12400 6600 (3800 2800 6600) 55248 15800 15296 31096) 24152 31096 Total costs to account for 29952 37696 67648 EUP 2880 2784 23.94022989 Cost per EUP 10.4 13.54022989 Costs Accounted for: Materials Conversion Total Completed and tfd Cl. WIP Total costs accounted for 2400 10.4 24960 2400 * 13.54 32497 57457 480 10.4 5199 4992 384 13.54 10191 29952 37696 67648 Cost reconciliation schedule Costs Accounted for: Transferred out 57457 |closing WIP Materials 4992 Conversion costs Total costs 5199 10191 67648 88

Answer 1 EUP - materials Materials Unit completed Closing WIP Materials EUP 2400 480 2880 Answer 2 Total cost to account for/ 29952/ EUP Cost per EUP - materials 2880= 10.4 Answer 3 Units completed Cost per EUP-mat Cost of mat. Tfd 2400 10.4 24960 Answer 4 Cost of materials Opening WIP Purcahses Cost of mat. Good tfd. Ending WIP 5800 24152 24960 4992