Question

During April, the first production department of a process manufacturing system completed its work on 420,000 units of a product and transferred them to the next department. Of these transferred units, 84,000 were in process in the production department at the beginning of April and 336,000 were started and completed in April. April's beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 106,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion. Compute the number of equivalent units with respect to both materials used and conversion used in the first production department for April using the weighted-average method. Equivalent Units of Production - Weighted Average EUP-Materials% Conversion Units % Materials EUP-Conversion Total The production department had $1,452,832 of direct materials and $1,035,300 of conversion costs charged to it during April. Also, its April beginning inventory of $365,638 consists of $339,208 of direct materials cost and $26,430 of conversion costs 1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 3. Using the weighted-average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.) Required 1. and 2 Equivalent Units of Production (EUP)- Weighted Average Method EUP-Materials% Conversion EUP- Conversion Units % Materials Equivalent units of production Materials Conversion Cost per Equivalent Unit of Production Total costs Costs Costs Equivalent units of production EUP EUP Cost per equivalent unit of production (rounded to 2 decimals) 0 0 Total Costs to Account for: Total costs to account for Total costs accounted for $ 0.00 Difference due to rounding cost/unit $ 0.00 Required 3. Cost Assignment and Reconciliation Cost of units transferred out EUP Cost per EUP Total cost Direct materials Conversion Total costs transferred out Costs of ending work in process Total cost EUP Cost per EUP 0.00 $ Direct materials 0.00 Conversion 0.00 0.00 Total cost of ending work in process Total costs accounted for

Answer 1

Solution:

First production department Production cost Report
Particulars	Units	% Materials	Material	% Conversion	Conversion
Equivalent units of production - Weighted Average method
Unit completed & Transferred out	420000	100%	420000	100%	420000
Ending Work In Proces	106000	80%	84800	30%	31800
Equivalent units of production	526000		504800		451800
Cost per equivalent unit of production			Material		Conversion
Beginning Work In Process			$339,208.00		$26,430.00
Cost added during the period			$1,452,832.00		$1,035,300.00
Total costs		Cost	$1,792,040.00	Cost	$1,061,730.00
Equivalent units of production		EUP	504800	EUP	451800
Cost per equivalent unit			$3.55		$2.35
Cost Assignment and Reconciliation:
Cost of unit transferred out	EUP	Cost per EUP	Total Cost
Direct materials	420000	$3.55	$1,491,000.00
Conversion	420000	$2.35	$987,000.00
Total costs transferred out			$2,478,000.00
Cost of ending work in process
Direct materials	84800	$3.55	$301,040.00
Conversion	31800	$2.35	$74,730.00
Total Cost of ending work in process			$375,770.00
Total costs accounted for			$2,853,770.00
Cost charged to production:
Beginning Work In Process	$365,638.00
Cost Added during period	$2,488,132.00
Total costs to account for	$2,853,770.00
Total costs accounted for	$2,853,770.00
Difference due to rounding cost per unit	$0.00