Units Percentage Complete Cost Beginning WIP Inventory - August 22,000 Direct Ma
ID: 2333284 • Letter: U
Question
Units
Percentage Complete
Cost
Beginning WIP Inventory - August
22,000
Direct Materials
75%
$ 4,200
Conversion Cost
70%
$ 2,450
Units Started in August
12,000
Costs incurred in August
Direct Materials
$ 17,000
Conversion Cost
$ 16,800
Ending WIP Inventory
6,000
Direct Materials
80%
Conversion Cost
60%
Use weighted-average process costing to compute equivalent units & prepare a PRODUCTION COST REPORT
Using the format below
% Completed
Equivalent Units
Flow of Units
Physical Units
DM
Conv
DM
Conv
Units to Account for
Beginning WIP
Units Started
1200
Total Units to Account for
Units Accounted For
Completed & TO
Ending WIP
Equivalent Units
Flow of Costs
Costs to be accounted for
Costs in Beginning WIP
Current Period Costs
Total Costs to be Accounted for
Equivalent Units
Costs per EU
Cost Accounted For:
Units Transferred Out
Ending WIP
Total Costs Accounted For
Units
Percentage Complete
Cost
Beginning WIP Inventory - August
22,000
Direct Materials
75%
$ 4,200
Conversion Cost
70%
$ 2,450
Units Started in August
12,000
Costs incurred in August
Direct Materials
$ 17,000
Conversion Cost
$ 16,800
Ending WIP Inventory
6,000
Direct Materials
80%
Conversion Cost
60%
Use weighted-average process costing to compute equivalent units & prepare a PRODUCTION COST REPORT
Using the format below
Explanation / Answer
Units
Reconciliation of Units
A
Opening WIP
22,000
B
Introduced
12,000
C=A+B
TOTAL
34,000
D
Transferred
28,000
E=C-D
Closing WIP
6,000
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
28,000
100%
28,000
100%
28,000
Closing WIP
6,000
80%
4,800
60%
3,600
Total
34,000
Total
32,800
Total
31,600
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Beginning WIP Inventory Cost
$ 4,200.00
$ 2,450.00
$ 6,650.00
Cost incurred during period
$ 17,000.00
$ 16,800.00
$ 33,800.00
Total Cost to be accounted for
$ 21,200.00
$ 19,250.00
$ 40,450.00
Total Equivalent Units
32,800
31,600
Cost per Equivalent Units
$ 0.6463
$ 0.6092
Statement of cost
Equivalent Cost/unit
Ending WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
$ 0.65
4,800
$ 3,102.44
28,000
$ 18,097.56
Conversion Cost
$ 0.61
3,600
$ 2,193.04
28,000
$ 17,056.96
TOTAL
$ 40,450.00
TOTAL
$ 5,295.48
TOTAL
$ 35,154.52
Cost to be accounted for
Beginning Work In Progress:
Material
$ 4,200.00
Conversion Cost
$ 2,450.00
$ 6,650.00
Cost incurred during period:
Material
$ 17,000.00
Conversion Cost
$ 16,800.00
$ 33,800.00
Total Cost to be accounted for
$ 40,450.00
Cost accounted for
Cost of Units transferred
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
28,000
$ 0.65
$ 18,097.56
Conversion Cost
28,000
$ 0.61
$ 17,056.96
$ 35,154.52
Cost of ending WIP
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
4,800
$ 0.65
$ 3,102.44
Conversion Cost
3,600
$ 0.61
$ 2,193.04
$ 5,295.48
Total Cost accounted for
$ 40,450.00
Complete Answer in format provided
% Complete
Equivalent Units
Flow of Units
Physical Units
DM
Conv
DM
Conv
Units To Account for
Beginning Inventory
22,000
Units Started
12,000
Total Units to Account For
34,000
Units Accounted for
Completed and transferred out
6,000
80%
60%
4800
3600
Ending WIP
28,000
100%
100%
28000
28000
Equivalent Units
34,000
32,800
31,600
Flow of Costs
Costs to be Accounted for
Cost in beginning Inventory
$ 4,200.00
$ 2,450.00
Current Period Cost
$ 17,000.00
$ 16,800.00
Total Cost to be Accounted for
$ 21,200.00
$ 19,250.00
Equivalent Units
32,800
31,600
Cost per EU
$ 0.65
$ 0.61
Cost Accounted for
Units Transferred out
28000
$ 18,097.56
$ 17,056.96
Ending WIP
6000
$ 3,102.44
$ 2,193.04
Total Cost Accounted for
$ 21,200.00
$ 19,250.00
Units
Reconciliation of Units
A
Opening WIP
22,000
B
Introduced
12,000
C=A+B
TOTAL
34,000
D
Transferred
28,000
E=C-D
Closing WIP
6,000
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