Alpha Company had the following information for FY 2017: Work in Process - 1/1/1

Question

Alpha Company had the following information for FY 2017: Work in Process - 1/1/17 100,000 units Units Started into Production 575,000 units Work in Process - 12/31/17 75,000 units Direct Material put into Production $575,000 Direct Labor put into Production $843,750 The beginning work in process was 100% complete as to direct materials and 75% complete as to conversion costs. The ending work in process was 100% complete as to direct materials and 50% complete as to conversion costs. The beginning work in process consisted of: Direct Material $268,750 Conversion Costs $431,250 Alpha company uses the weight-average method. Use the information to prepare the cost allocation section of the cost of production report for FY 2017.

Explanation / Answer

UNITS TO ACCOUNT FOR: Whole Units Beginning WIP 100000 Started into production 575000 Total units to account for 675000 UNITS ACCOUNTED FOR: Equivalent units Materials Conversion cost Units completed and transferred 600000 600000 600000 Ending WIP 75000 75000 37500 Units accounted for 675000 675000 637500 COSTS TO ACCOUNT FOR: Materials Conversion cost Total Cost Beginning WIP 268750 431250 700000 Costs added during the period 575000 843750 1418750 Total costs to account for 843750 1275000 2118750 Cost per equivalent unit 1.25 2.00 COSTS ACCOUNTED FOR: Units completed and transferred 600000 750000 1200000 1950000 Ending WIP 75000 93750 75000 168750 Costs accounted for 843750 1275000 2118750

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