The production department in a process manufacturing system completed 356.000 un
ID: 2481752 • Letter: T
Question
The production department in a process manufacturing system completed 356.000 units of product and transferred them to finished goods during a recent period. Of these units, 56.000 were in process at the beginning of the period. The other 300,000 units were started and completed during the period. At period end. 39,000 units were in process. Prepare the department's equivalent units of production with respect to direct materials under each of three separate assumptions using the Weighted -average method for process costing. All direct materials are added to products when processing begins. Direct materials are added to products evenly throughout the process. Beginning goods in process inventory was 50% complete, and ending goods in process inventory was 75% complete. One-half of direct materials is added to products when the process begins and the other half is added when the process is 75% complete as to direct labor. Beginning goods in process inventory is 40% complete as to direct labor, and ending goods in process inventory is 60% complete as to direct labor.Explanation / Answer
Solution:
Weighted Average Method
1) All Direct Materials are added to products when processing begins.
Units
% Material
EUP. Materials
Completed & Transferred Units
356,000
100%
356,000
Closing Work In Process, June 30
39,000
100%
39,000
Total EUP
395,000
2)
Units
% Material
EUP. Materials
Completed & Transferred Units
356,000
100%
356,000
Closing Work In Process, June 30
39,000
75%
29,250
Total EUP
385,250
3)
Units
% Material
EUP. Materials
Completed & Transferred Units
356,000
100%
356,000
Closing Work In Process, June 30
39,000
50%
19,500
Total EUP
375,500
Note --- Under weighted average method, work done on beginning inventory is ignored...
Units
% Material
EUP. Materials
Completed & Transferred Units
356,000
100%
356,000
Closing Work In Process, June 30
39,000
100%
39,000
Total EUP
395,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.