Caleb Barett Inc. uses the weighted-average method in its process costing system
ID: 2466050 • Letter: C
Question
Caleb Barett 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 recent month.
Work in process, beginning:
Units in process 100
Percent complete with respect to materials 70%
Percent complete with respect to conversion 80%
Costs in the beginning inventory:
Materials cost $525
Conversion cost $1,696
Units started into production during the month $11,000
Units completed and transferred out $10,700
Costs added to production during the month:
Materials cost $83,405
Conversion cost $223,606
Work in process, ending:
Units in process 400
Percent complete with respect to materials 50%
Percent complete with respect to conversion 20%
Required: Using the Weighted Average Method, prepare a Production Report to clearly show (SHOW FORMULAS/WITH WORK):
a. Units to be accounted for and how they are accounted for
b. Determine the equivalent units production.
c. Determine the costs per equivalent unit.
d. Determine the cost of ending work in process inventory.
e. Determine the cost of the units transferred to the next department.
Explanation / Answer
a)
b)
d)Cost of ending WIP = (400*.50 *7.7) +(400*.20*20.9)
= 1540+ 1672 = $ 3212
E)Cost of units transfered out= (7.7+20.9) * 10700 = $ 306020
Units at beginning 100 Units started during the year 11000 Units to be accounted for 11100 Units accounted as Units transfered out 10700 Units at end 400Related Questions
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