Q1 The Assembly Department uses a weighted-average process cost accounting syste

Q: Q1 The Assembly Department uses a weighted-average process cost accounting syste

Reconciliation of Units A Opening WIP 25000 B Introduced 95,000 C=A+B TOTAL 120,000 D Transferred 90,000 E=C-D Closing WIP 30,000 Answer – Units to be Accounted for in June = 120,000. Reconciliation of Units A Opening WIP 25000 B Introduced 95,000 C=A+B TOTAL 120,000 D Transferred 90,000 E=C-D Closing WIP 30,000

ID: 2341379 • Letter: Q

Question

The Assembly Department uses a weighted-average process cost accounting system. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, $190,000 of materials costs and $135,500 in conversion costs were charged to the department. The beginning work in process inventory was $93,000 on July 1, comprised of $80,000 of materials costs and $13,000 of conversion costs.

Other data for the month of July are as follows:

How many physical units have to be accounted for in July?

Beginning work in process inventory, 7/1 25,000 units (40% complete) Units completed and transferred out 90,000 units Ending work in process inventory, 7/31 30,000 units (30% complete)

Explanation / Answer

Reconciliation of Units

Opening WIP

25000

Introduced

95,000

C=A+B

TOTAL

120,000

Transferred

90,000

E=C-D

Closing WIP

30,000

Answer –

Units to be Accounted for in June = 120,000.