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
Weighted Average method
Quantity schedule and equivalent units
Explanation:
Work in process, ending
Materials (100*50%) = 50
Conversion (100*30%) = 30
Costs per equivalent unit
Cost of ending work in process inventory and units transferred out:
Cost Reconciliation:
Cost of beginning work in process inventory $5,204
Costs added to production during the period $392,076
Total Cost $397,280
Cost of ending work in process inventory $940
Cost of units completed and transferred out $396,340
Total Cost $397,280
| Quantity Schedule | |
| Units to be accounted for: | |
| Work in process, beginning | 400 |
| Started into production | 13,000 |
| Total units | 13,400 |
