Pearl Company has the following production information for O

Pearl Company has the following production information for October: 45,000 units transferred out and 14,000 units in ending work in process that are 100 percent complete for materials and 66 percent complete for conversion costs. Materials cost is $5.20 per equivalent unit and conversion cost is $8.20 per equivaient unit Determine the cost assigned to the units transferred out and the units in ending work in process using the weighted-average method Direct Materials Conversion Total Units Completed & Transferred Out Ending Inventory Total Cost Accounted for 01$

Solution

Statement of Equivalent Units

Material

Conversion Cost

Units

Complete %

Equivalent units

Complete %

Equivalent units

Transferred

45000

100%

45000

100%

45000

Closing WIP

14000

100%

14000

66%

9240

Total

59000

Total

59000

Total

54240

Statement of cost

Cost

Cost/unit

Closing WIP

Transferred

Total Cost

Units

Cost Allocated

Units

Cost Allocated

Material

$        5.20

14000

$          72,800.00

45000

$ 234,000.00

$ 306,800.00

$                   -  

Conversion cost

$        8.20

9240

$          75,768.00

45000

$ 369,000.00

$ 444,768.00

0

0

Total

13.4000

TOTAL

148568

TOTAL

603000

$ 751568.00

Direct Material

Conversion

Total Cost

Units Completed and Transferred Out

234000

369000

603000

Ending Inventory

72800

75768

148568

Total Cost Accounted For

306800

444768

751568

Statement of Equivalent Units
		Material	Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	45000	100%	45000	100%	45000
Closing WIP	14000	100%	14000	66%	9240
Total	59000	Total	59000	Total	54240