Q5 The Assembly Department uses a weighted-average process cost accounting syste
ID: 2341385 • Letter: Q
Question
Q5
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:
What is the total cost of the July 31 Work In Process Inventory?
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
Answer
Units Reconciliation
Units to account for:
Beginning WIP
25,000
Units started this period
95,000
Total Units to account for
120,000
Total Units accounted for:
Completed & Transferred out
90,000
Ending WIP
30,000
Total Units accounted for
120,000
EUP - Weighted Average Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units TRANSFERRED
90,000
100%
90,000
100%
90,000
Units of ENDING WIP
30,000
100%
30,000
30%
9,000
Equivalent Units of Production
120,000
99,000
COST per EUP
Material
Conversion
Cost of Beginning WIP
$ 80,000.00
$ 13,000.00
Cost incurred during the period
$ 190,000.00
$ 135,500.00
Total Costs
Costs
$ 270,000.00
Costs
$ 148,500.00
Equivalent units of production
EUP
120,000
EUP
99,000
Cost per EUP
$ 2.25
$ 1.50
Costs of Ending WIP:
EUP
Cost per EUP
Total Cost
- Direct Materials
30,000
$ 2.25
$ 67,500.00
- Conversion
9,000
$ 1.50
$ 13,500.00
Total cost of ending WIP
$ 81,000.00
Total cost of the July 31 Work In Process Inventory = $ 81,000 = Answer
Units Reconciliation
Units to account for:
Beginning WIP
25,000
Units started this period
95,000
Total Units to account for
120,000
Total Units accounted for:
Completed & Transferred out
90,000
Ending WIP
30,000
Total Units accounted for
120,000
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