l think we goofed when we hired that new asslstant controlle

\"l think we goofed when we hired that new asslstant controller,\" sald Ruth Scarplno, presldent of Provost Industries. \"Just look at thlS report that he prepared for last month for the Finishing DepartmentI can\'t understand It.\" Finishing Department costs: Work in process inventory, April 1,489 units; materials 1ex complete ; conversion 60% complete $ 8,731 Costs transferred in during the month from the 33,491 14,857 29,656 $ 85,929 preceding department, 2,988 units Materials cost added during the month Conversion costs incurred during the month Total departmental costs Finishing Department costs assigned to: Units completed and transferred to finished goods 3,780 units at $23.228 per unit $ 85,929 Work in process inventory, Apri1 38, 688 units; materials e% complete; conversion sex complete Total departmental costs assigned $ 85,929 Consists of cost transferred In, $4,306; materlals cost, $2,075; and converslon cost, $2350. He\'s struggling to lean our system,\" replied Frank Harrop, the operations manager. \"The problem Is that he\'s been away from process costing for a long time, and It\'s coming back slowly. It\'s not Just the format of his report that I\'m concerned about. Look at that $23.220 unit cost that he\'s come up wlth for April. Doesn\'t that seem high to you?\" sald Ms. Scarplno. Yes, It does seem high; but on the other hand, I know we had an Increase In materlals prices during April, and that may be the explanation, replied Mr. Harrop. \"TIll get someone else to redo this report and then we can see what\'s going on. Provost Industries manufactures a ceramic product that goes through two processing departments-Molding and Finishlng. The company uses the welghted-average method In its process costing. Required: 1-a. Calculate the equlvalent units of production. 1-b. Calculate the cost per equvalent unlt. (Round your answers to 2 decimal places.) 1-C. How much cost should have been assigned to the ending work In process Inventory? (Round your intermediate calculations to 2 decimal places.) 1-d. How much cost should have been assigned to the unlts completed and transferred to finished goods? (Round your intermedlate calculations to 2 decimal places.) Materials Conversion Total n Costs 1-a. Equivalent units of production 1-b. Cost 1-c. Cost of ending work in process inventory 1-d. Cost of units completed and transferred out 2,900 600 per equivalent unit

Solution

UNITS TO ACCOUNT FOR: Whole units Beginning WIP 1400 Units introduced during the period 2900 Total units to account for 4300 UNITS ACCOUNTED FOR: Equivalent Units Transferred in costs Material Conversion Cost Units completed and transferred 3700 3700 3700 3700 Ending WIP 600 600 0 300 Total units accounted for 4300 4300 3700 4000 Transferred in costs Material Cost Conversion Cost Total Cost Beginning WIP cost 4306 2076 2350 8732 Costs added during the period 33491 14057 29650 77198 Total costs to account for 37797 16133 32000 85930 Cost per equivalent unit 8.79 4.36 8.00 21.15 COSTS ACCOUNTED FOR: Cost of units completed and transferred out 32523 16133 29600 78256 Cost of ending WIP 5274 0 2400 7674 Total costs accounted for 37797 16133 32000 85930 ANSWERS: Transferred in costs Material Conversion Total 1-a Equivalent units of production 4300 3700 4000 1-b Cost of equivalent unit 8.79 4.36 8.00 21.15 1-c Cost of ending WIP inventory 5274 0 2400 7674 1-d Cost of units completed and transferred out 32523 16133 29600 78256