Bingham Corporation uses the weighted-average method in its process costing syst
ID: 2427452 • Letter: B
Question
Bingham Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below.
Work in process, beginning:
Units in beginning work-in-process inventory
400
Materials costs
$6,900
Conversion costs
$2,500
Percentage complete for materials
80%
Percentage complete for conversion
15%
Units started into production during the month
6,000
Units transferred to the next department during the month
5,200
Materials costs added during the month
$112,500
Conversion costs added during the month
$210,300
Ending work in process:
Units in ending work-in-process inventory
1,200
Percentage complete for materials
60%
Percentage complete for conversion
35%
Required: Calculate the equivalent units for conversion (using the weighted-average method) for the month in the first processing department.
Units in beginning work-in-process inventory
400
Materials costs
$6,900
Conversion costs
$2,500
Percentage complete for materials
80%
Percentage complete for conversion
15%
Units started into production during the month
6,000
Units transferred to the next department during the month
5,200
Materials costs added during the month
$112,500
Conversion costs added during the month
$210,300
Explanation / Answer
Statemennt of equivalent units of production Particulars % of completion Equivalent units Equivalent units Produced during the period Beginning WIP (400 Units): Materials costs 80% 160 40 Conversion costs 15% 30 170 Beginning Stock 190 210 Units started for production-6000 Units sold- 5200 Units produced and sold= 5200-400= 4800 Units produced and sold during the period 100% 4800 4800 Closing WIP (1200 Units): Materials costs 60% 360 360 Conversion costs 35% 210 210 570 570 Total Equivalent unnits produced during the period 5580 Process cost of production Total cost during the period Materials costs added during the month $112,500 Conversion costs added during the month $210,300 Total cost during the period $322,800 Cost per unit of equivalent production ( $322800/5580) $57.85
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