Question: Frank's Chips uses the weighted average method to account for its WIP inventories. The accounting records show the following data for a particular day:
Beginning WIP inventory:
Direct materials ............................................ $ 488
Conversion costs........................................... 138
Current period costs in work in process
Direct materials...................................... $5,720
Conversion costs ......................................... 3,322
Quantity information is obtained from the manufacturing records and includes the following.
Beginning inventory....................................... 150 units (partially complete)
Current period units started ............................... 1,000 units
Ending inventory .......................................... 300 units
Percentage of completion
Direct materials................................ 40%
Conversion costs .............................. 20%
Spot age ...................................................... 100 units
Percentage of completion
Direct materials ............................................ 100%
Conversion costs ........................................... 100%
Required:
Calculate the cost of good units completed and transferred out, spoilage, & ending inventory using the weighted average method.