Homework SourseBachelet Inc uses the weightedaverage method in its process
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.
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.
| Work in process, beginning: | |||
| Units in process | 400 | ||
| Percent complete with respect to materials | 90 | % | |
| Percent complete with respect to conversion | 40 | % | |
| Costs in the beginning inventory: | |||
| Materials cost | $ | 756 | |
| Conversion cost | $ | 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 | 100 | ||
| Percent complete with respect to materials | 50 | % | |
| Percent complete with respect to conversion | 30 | % | |
| |
Solution
Solution a:
Solution b:
Solution c & d:
Note: It is assumed that units completed and transferred out given in question is not correct as total units accounted for each not matching. Therefore we have assumed that units in ending WIP is correctly given but units completed and transferred out should be = 400 + 13000 - 100 = 13300 units
| Computation of Equivalent unit of Production - Weighted Average (First Proessing Department) | |||
| Particulars | Physical Units | Material | Conversion |
| Unit completed & Transferred out | 13300 | 13300 | 13300 |
| Closing WIP: | 100 | ||
| Material (50%) | 50 | ||
| Conversion (30%) | 30 | ||
| Equivalent units of production | 13400 | 13350 | 13330 |
