Equivalent Units and Product Cost ReportWeighted Average Met

Equivalent Units and Product Cost Report—Weighted Average Method

The following data (and annotations) for March 2016 are for the work in process account of the first of Olympus Company\'s four departments used in manufacturing its only product.

Work in Process-Department 1

Beginning balance (3,000 units, 40% complete)

Direct material $18,900

Conversion costs 11,200

Transferred to department 2 (23,000 units) (a)

Direct material (24,000 units) 144,000

Direct labor 154,600

Manufacturing overhead 55,050

Ending balance [ (b) units, 25% complete] (c)

Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

Equivalent Units and Product Cost Report-Weighted Average Method The following data (and annotations) for March 2016 are for the work in process account of the first of Olympus Company\'s four departments used in manufacturing its only product. Work in Process-Department 1 Beginning balance (3,000 units, 40% complete) Direct material $18,900 Conversion costs Transferred to department 2 (23,000 units) Direct material (24,000 units) Direct labor Manufacturing overhead Ending balance [ (bl units, 25% complete 11,200 144,000 154,600 55,050 Assuming that Olympus uses the weighted average method and that materials are added at the beginning of the process and conversion costs are incurred evenly throughout, solve for the three missing numbers Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number Olympus Company Department 1 Equivalent Units Calculations, March 2016 Equivalent Units Direct Materials %Work Done Conversion Costs %Work done Complete/Transferred Ending Inventory b Total Product Cost Report Direct Materials Conversion Costs eginning Inventory Current Total Costs tO Account For ÷ Total Equivalent Units Average cost/Equivalent unit (round four decimal places) Complete Transferred: Direct Materials Conversion costs Cost of Goods Manufactured Ending Inventory Direct Materials Conversion costs Cost of Ending Inventory C. Total Costs Allocated

Solution

Weighted average cost Beggining units 3000 Transferred out 23,000 Started intro production 24000 Ending units 4,000 Units accounted for 27000 27000 Equivalent units Material Conversion cost Units transferred                      A 23000 23000 Ending Units 4,000 4,000 Completion 100% 25% B 4000 1000 Total units 27000 24000 Cost per equivalent units Particulars Material Conversion cost total As at beginning 18900 11200 30100 Added during the month 144000 209650 353650 Cost to be accounted for 162900 220850 383750 Total eqivalent units 27000 24000 Cost per equivalent unit 6.03 9.20 15.24 Cost per equivalent unit = Cost to be accounted for / Total equivalent units Cost of ending work in progress Conversion cost Particulars Material Total Ending units 4,000 4,000 Cost per equivalent units 6.03 9.20 Completion 100% 25% Total cost 24133 9202 33335 Cost of goods transferred Conversion cost Particulars Material Total Number of units 23000 23000 Cost per equivalent units 6.03 9.20 15.24 Total amount 138767 211648 350415