Question

During April, the first production department of a process manufacturing system completed its work on 330,000 units of a product and transferred them to the next department. Of these transferred units, 66,000 were in process in the production department at the beginning of April and 264,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 88,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.
Weighted average: Costs assigned to output and inventories LO C2
The production department had $918,775 of direct materials and $723,261 of conversion costs charged to it during April. Also, its beginning inventory of $185,284 consists of $142,285 of direct materials cost and $42,999 of conversion costs.
1&2. Using the weighted-average method, compute the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output.

Answer 1

Answer:

total units completed = 330,000

beginning WIP = 66,000

ending WIP = 88,000

total EUP conversion costs = 330,000 + (88,000 x 30%) = 356,400

total EUP materials = 330,000 + (88,000 x 80%) = 400,400

total conversion costs = $723,261 + $42,999 = $766,260

total materials costs = $918,775 + $142,285 = $1,061,060

conversion cost per EUP = $766,260 / 356,400 = $2.15

materials cost per EUP = $1,061,060 / 400,400 = $2.65