Instructions: You must provide your calculations in answering these questions. J

Question

Instructions: You must provide your calculations in answering these questions. Just the answer alone is NOT sufficient.
Rockwall Tile Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for the month of January.



Work in process, beginning:
Units in process …………………………………………………………………… 100
Percent complete with respect to materials ……………………….. 70%
Percent complete with respect to conversion …………………….. 40%
Costs in the beginning inventory:
Materials cost …….………………………………………………………………….. $364
Conversion cost ………………………………………………………………………. $1,120
Units started into production during the month …………………….. 23,000
Units completed and transferred out ……………………………………… 22,900
Costs added to production during the month:
Materials cost …………………………………………………………………………. $124,160
Conversion cost ………………………………………………………………………. $637,088
Work in process, ending:
Units in process ………………………………………………………………………. 200
Percent complete with respect to materials …………………………… 80%
Percent complete with respect to conversion ………………………… 70%




Required:

Using the weighted-average method:

a. Determine the equivalent units of production for materials and conversion costs.

b. Determine the cost per equivalent unit for materials and conversion costs.

c. Determine the cost of units transferred out of the department during the month.

d. Determine the cost of ending work in process inventory in the department.

Explanation / Answer

(a) Equivalent units Material Conversion cost Opening 100 100 Complete units         22,800             22,800 Closing = 200*80% = 200*70% 160 140 Therefore total equivalent units of prodcution         23,060             23,040 (b) Material Conversion cost Opening Wip cost 364 1120 Cost incurred during the year       124,160           637,088 Total cost incurred (a)       124,524           638,208 Equivalent units (b)         23,060             23,040 Cost per equivalent unit (a/b)            5.40               27.70 ( c) Cost of units transferred out of the department Materials = 22900*5.4       123,660 Conversioncost = 22900*27.7       634,330 Total cost of goods transferred       757,990 (d) Cost of ending work in process Materials = 160*5.4 864 Conversion cost = 140*27.7 3878 Total cost of goods transferred 4742

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