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75% \") Wed 6:24 PM dt View History Bookmarks Window Help roblem 4-18 (Cooperative San Jose-page 17.. Help Save &Exit; Submit Check my work Problem 4-18 Interpreting a Report-Weighted-Average Method [LO4-2, L04-3, L04-4] Cooperative San José of southem Sonora state in Mexico makes a unique syrup using cane suger and local herbs. The syrup is sold in small bottles and is prized as a fiavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its process costing system. A hastly prepared report for the Mixing Department for April appears below e to be accounted for materials ,\" e-in Started into predues ion Toral unit n to be accounted for to sext departnents conversion sos complete) i ise aocounted tor Prev 1r 1 Score answer

Solution

1 Equivalent units of production: Materials Conversion Transferred to next department 37100 37100 Ending work in process 6900 4600 (9200*75%) (9200*50%) Equivalent units of production 44000 41700 2 Cost per equivalent unit=Total cost/Equivalent units of production Materials Conversion Beginning work in process 16530 8004 Cost added 75870 39534 Total cost (a) 92400 47538 Equivalent units of production (b) 44000 41700 Cost per equivalent unit (a)/(b) 2.1 1.14 3 Units started and completed: Transferred to next department 37100 Less: units in the beginning work in process 8700 Units started and completed 28400 Note: It is assumed that units in the beginning inventory are completed first 4 No. The manager should not be rewarded since the reduction in material price is due to the costs of march month have been averaged with the cost of April month.This is a major drawback of Weighted average method.