Alpha Company had the following information for FY 2017: The beginning work in p

Question

Alpha Company had the following information for FY 2017:

The beginning work in process was 100% complete as to direct materials and 75% complete 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:

Alpha Company uses the weighted- average method. Use this information to prepare the Cost Allocation section of the Cost of Production Report for FY 2017. (Round all final dollar values to the nearest whole dollar.) (Note: there are additional lines in the blank answer schedule.)

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 Conversions Costs put into Production $843,750

Explanation / Answer

Equivalent unit of material = 600000+(75000*100%) = 675000 unit

Equivalent unit of conversion = 600000+(75000*50%) = 637500 unit

Cost per equivalent unit of material = (268750+575000)/675000 = 1.25 per unit

Cost per equivalent unit of conversion = (843750+431250)/637500 = 2 per unit

Cost production report section :

Cost to be accounted for Beginning work in process (268750+431250) 700000 Cost added during production (575000+843750) 1418750 Total cost to be accounted for 2118750 Cost accounted as Cost on units transferred out (2+1.25)*600000 1950000 Ending work in process (75000*1.25+37500*2) 168750 Total cost accounted as 2118750

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