1728 Weightedaverage method equivalent enits and anit costs

17-28 Weighted-average method, equivalent enits and anit costs. Consider the following data for the assembly division of Fenton Watches Inc: DirectConversion Physical Units Materials Costs Beginning work in process (May 1)\" Started in May 2015 Completed during May 2015 Ending work in process (May 31) Costs added during May 2015 \"Degree of completion: direct materials, 90%; conversion costs, 40% Degree of completion: direct materials, 60%; conversion costs, 30%. $ 493,360 S 91,040 80 500 460 3,220,000 $1,392,000 The assembly division uses the weighted-average method of process costing. Required Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. ?17-27 Weighted-average method, assigning costs(continuation of Exercise 17-26) Required For the data in Exercise 17-26, summarize total costs to account for, calculate cost per equiva direct materials and conversion costs, and assign total costs to units comple to units in ending work in process. ted fand transferred out) and 17-28 FIFO method, equivalent units. Refer to the information in Exercise 17-26. Suppose the assembly division at Fenton Watches Inc. uses the FIFO method of process costing instead of the weighted-average method Required Is and conversion costs. Show physical units in the first column Compute equivalent units for direst materia of your schedule. 17-29 FIFO method, assigning costs (continuation of Exereise 17-28) Required For the data in Exercise 17-26, use the FIFO method to summarize total costs to account for, calculate c per equivalent unit for direct materials and conversion costs, and assign total costs to units completed (land transferred out) and to units in ending work in process.

Solution

WEIGHTED AVERAGE UNITS TO ACCOUNT FOR: Beginning Work in Process units 80 Add: Units Started in Process 500 Total Units to account for: 580 UNITS TO BE ACCOUNTED FOR: Units started and completed 460 Ending Work in Process 120 Total Units to be accounted for: 580 Equivalent Units: PHYSICAL UNTS Material Cost Conversion % Completion Units % Completion Units Units started and completed 460 100% 460 100% 460 Ending Work in Process 120 60% 72 30% 36 Total Equivalent units 580 532 496 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 493,360 91,040 Cost Added during May 3,220,000 1,392,000 Total Cost to account for: 3,713,360 1,483,040 Total Cost to account for: 5,196,400 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 3,713,360 1,483,040 Equivalent Units 532 496 Cost per Equivalent unit 6980 2990 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (460 units) Equivalent unit Cost per EU Total Cost Material 460 6980 3210800 Conversion Cost 460 2990 1375400 Total Cost of Units completed and transferred out: 4586200 Ending Work in process (120 units) Equivalent unit Cost per EU Total Cost Material 72 6980 502560 Conversison Cost 36 2990 107640 Total cost of Ending Work in process: 610,200 FIRST IN FIRST OUT UNITS TO ACCOUNT FOR: Beginning Work in Process units 80 Add: Units Started in Process 500 Total Units to account for: 580 UNITS TO BE ACCOUNTED FOR: Units completed from Beginning WIP 80 Units started and completed 380 Ending Work in Process 120 Total Units to be accounted for: 580 Equivalent Units: Physical Material Cost Conversion Units % Completion Units % Completion Units Units completed from Beg. WIP 80 10% 8 60% 48 Units started and completed 380 100% 380 100% 380 Ending Work in Process 120 60% 72 30% 36 Total Equivalent units 580 460 464 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 3,220,000 1,392,000 Equivalent Units 460 464 Cost per Equivalent unit 7000 3000 TOTAL COST ACCOUNTED FOR: Units Completed from Beginning WIP (80 units) Equivalent unit Cost per EU Total Cost Beginning Cost 584400 Material 8 7000 56000 Conversion Cost 48 3000 144000 Cost of units completed from Beg WIP 784400 Units started and Transferred out (380 units) Equivalent unit Cost per EU Total Cost Material 380 7000 2660000 Conversion Cost 380 3000 1140000 Total Cost of Units completed and transferred out: 3800000 Ending Work in process (120 units) Equivalent unit Cost per EU Total Cost Material 72 7000 504000 Conversison Cost 36 3000 108000 Total cost of Ending Work in process: 612,000