Bachelet 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. Work in process, beginning: 400 Units in process Percent complete with respect to materials Percent complete with respect to conversion 90% 40% Costs in the beginning inventory Materials cost Conversion cost 756 $4,448 Units started into production during the month Units completed and transferred out 13,000 13,000 Costs added to production during the month: Materials cost Conversion cost 29,949 $362,127 Work in process, ending: 100 Units in process Percent complete with respect to materials Percent complete with respect to conversion 508 30%

Solution

Answer

Equivalent Units of production [EUP]

Statement of Equivalent Units

Material

Conversion Cost

Units

Complete %

Equivalent units

Complete %

Equivalent units

Transferred

13000

100%

13000

100%

13000

Closing WIP

100

50%

50

30%

30

Total

13100

Total

13050

Total

13030

EUP – Material = 13,050 units

EUP – Conversion cost = 13,030 units

Cost per Equivalent Units

COST

Material

Conversion Cost

TOTAL

Beginning WIP Inventory Cost

$                756.00

$        4,448.00

$               5,204.00

Cost incurred during period

$          29,949.00

$   362,127.00

$          392,076.00

Total Cost to be accounted for

$          30,705.00

$   366,575.00

$          397,280.00

Total Equivalent Units

13050

13030

Cost per Equivalent Units

$                2.35

$         28.13

Cost per EUP – Material = $ 2.35
Cost per EUP – Conversion cost = $ 28.13

----Working---

Cost accounted for

Ending Work In Progress:

Equivalent Units

Cost per Equivalent Units

Cost accounted for

Material

50

$                     2.35

$            117.50

Conversion Cost

30

$                   28.13

$            843.90

$                  961.40

Units Transferred:

Equivalent Units

Cost per Equivalent Units

Cost accounted for

Material

13000

$                     2.35

$      30,550.00

Conversion Cost

13000

$                   28.13

$   365,690.00

$          396,240.00

Total Cost accounted for

$          397,201.40

Answer: Requirement ‘c’ Cost of Units Transferred = $ 396,240

Answer: Requirement ‘d’ Cost of ending WIP = $ 961.40

Statement of Equivalent Units
		Material	Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	13000	100%	13000	100%	13000
Closing WIP	100	50%	50	30%	30
Total	13100	Total	13050	Total	13030