Question:
WEIGHTED AVERAGE METHOD, EQUIVALENT UNITS, UNIT COST, MULTIPLE DEPARTMENTS Fordman Company has a product that passes through two processes: grinding and polishing. During December, the grinding department transferred 20,000 units to the polishing department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (polishing) had the following physical flow schedule for December:
|
Units to account for:
|
|
|
Units, beginning work in process Units started
|
4,000 (40% complete) ?
|
|
Total units to account for
|
?
|
|
Units accounted for:
|
|
|
Units, ending work in process Units completed
|
8,000 (50% complete) ?
|
|
Units accounted for
|
?
|
Costs in beginning work in process for the polishing department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.
Required:
1. Assuming the use of the weighted average method, prepare a schedule of equivalent units.
2. Compute the unit cost for the month.