1. Linton Inc. uses the weighted-average method in its process costing system. T
ID: 2406282 • Letter: 1
Question
1. Linton Inc. uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were
Cost % complete
Material costs 6,000 50%
conversion costs 9900 30%
A total of 9,200 units were started and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Material costs $13,900
Conversion costs $322,500
The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs. Required (7 Points): 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, and the total product cost per equivalent unit. 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
1) Equivalent unit :
b) Determine the cost per equivalent unit for materials and conversion costs, and the total product cost per equivalent unit
Material = (6000+13900)/9640 = 2.06432 per equivalent unit
Conversion = (9900+322500)/8560 = 38.83178 per equivalent unit
Total product cost per unit = 2.06432+38.83178 = 40.8961
c. Determine the cost of units transferred out of the department during the month
Cost of unit transferred out = 40.8961*8200 = 335348
d. Determine the cost of ending work in process inventory in the department.
Ending work in process = 1440*2.06432+360*38.83178 = 16952
Whole unit % EUP-material % EUP-conversion Unit transferred out 8200 100% 8200 100% 8200 Ending work in process 1800 80% 1440 20% 360 Total 10000 9640 8560Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.