Yoder Company uses the weighted-average method in its process costing system. Th

Question

Yoder Company uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month: Work in process, beginning: Units in process Percent complete with respect to materials.... Percent complete with respect to conversion.. Costs in the beginning inventory: 40,000 70% 60% Materials cost $8,600 $4,800 Units started into production during the month.750,000 Conversion cost... Units completed and transferred out during the month... Costs added to production during the month: $223,000 .. $149,000 Work in process, ending: Units in process Percent complete with respect to material. Percent complete with respect to conversion.. 30,000 40% 30% Instructions th? (2 How many units were completed and transferred to the next department during the mon marks) What was the cost per equivalent unit for materials during the month? (4 marks) How much cost, in total, was assigned to the ending work in process inventory? (4 marks) 1. 2. 3.

Explanation / Answer

YODER COMPANY Step 1 Step 2: Equivalent Units Flow of physical units Direct Materials Conversion Costs Flow of production Units to account for Beginning Work in process 40000 Transferred in during March 750000 Total physical units to account for 790000 Units accounted for: Completed and transferred out during Month 760000 760000 760000 Ending work in process 30000 12000 9000 Total physical units accounted for 790000 Total equivalent units 772000 769000 Units completed and transferred out Direct material = 760000 x 100% = 760000 EU Conversion = 760000 x 100% = 760000 EU Ending inventory Direct material = 30000 x 40% = 12000 EU Conversion = 30000 x 30% = 9000 EU YODER COMPANY Direct Materials Conversion Costs Total Beginning Work in process 8600 4800 $                   13,400 Cost added during month 223000 149000 $                372,000 Total cost to account for (Step 3) 231600 153800 $                385,400 Divide by total equivalent units ÷ 772000 ÷ 769000 Cost per equivalent units (Step 4) $                                 0.30 $                                     0.20 YODER COMPANY Direct Materials Conversion Costs Total Units completed and transferred out to finished goods inventory (760000) [760000 x (0.30+0.20)] $                380,000 Ending work in process, March 31 Direct materials [12000 x 0.30]                         3,600 Conversion costs [9000 x 0.20]                         1,800 Total ending work in process, March 31 $                     5,400 Total cost accounted for $                385,400 Ans 1 760000 see above for explanation Ans 2 $0.30 Ans 3 $5,400

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