Determine the equivalent units of production for materials


Response to the following problem:

Barsoux 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:

Units in process
1,300
Percent complete with respect to materials
70%
Percent complete with respect to conversion
80%
Costs in the beginning inventory:

Materials cost $ 2,650
Conversion cost $ 6,736
Units started into production during the month
35,000
Units completed and transferred out
34,300
Costs added to production during the month:

Materials cost $ 563,405
Conversion cost $ 472,606
Work in process, ending:

Units in process
2,000
Percent complete with respect to materials
50%
Percent complete with respect to conversion
20%

Required:

Using the weighted-average method:

a. Determine the equivalent units of production for materials and conversion costs. (Carry calculations out to the nearest tenth of a cent.)

b. Determine the cost per equivalent unit for materials and conversion costs. (Round your answers to 2 decimal places.)

c.  Determine the cost of units transferred out of the department during the month. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)

d. Determine the cost of ending work in process inventory in the department. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)

Solution Preview :

Prepared by a verified Expert
Cost Accounting: Determine the equivalent units of production for materials
Reference No:- TGS02085754

Now Priced at $25 (50% Discount)

Recommended (92%)

Rated (4.4/5)