The Carlberg Company has two manufacturing departments assem

The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 11,400 units during November. The following production activity unit and cost information refers to the assembly department’s November production activities.

Required:
Calculate the assembly department’s cost per equivalent unit of production for materials and for conversion for November. Use the weighted-average method.

Assembly Department	Units	Percent of Direct Materials Added	Percent of Conversion
Beginning work in process		2,000			75	%		25	%
Units transferred out		9,000			100	%		100	%
Ending work in process		4,400			85	%		35	%

Solution

Cost per equivalent unit of production Choose Numerator Choose Denominator Costs to be allocated / Equivalent units of production Cost per equivalent unit of production Direct Materials $          19,110 /      12,740 $       1.50 Conversion $          21,080 /      10,540 $       2.00 Workings: a. Calculation of equivalent units of production Materials Conversion Physical Units % of completion Equivalent units % of completion Equivalent units of production of production Units transferred out         9,000 100%         9,000 100%         9,000 Ending Units         4,400 85%         3,740 35%         1,540 Total      13,400       12,740      10,540 b. Calculation of total costs Materials Conversions Beginning work in process inventory $       1,688 $        498 Costs added during the year $     17,422 $ 20,582 Total Costs $     19,110 $ 21,080