The Plastic Flowerpots Company has two manufacturing departments, molding and pa

Question

The Plastic Flowerpots Company has two manufacturing departments, molding and packaging. At the beginning of the month, the molding department has 4,500 units in inventory, 70% complete as to materials. During the month, the molding department started 30,500 units. At the end of the month, the molding department had 6,750 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department.
Cost information for the molding department for the month follows:

Using the weighted-average method, compute the molding department’s (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month. (Round "cost per equivalent unit of production" to 2 decimal places.)

Using the weighted-average method, assign direct materials costs to the molding department’s output—specifically, the units transferred out to the packaging department and the units that remain in process in the molding department at month-end. (Do not round intermediate calculations.)

Beginning work in process inventory (direct materials) $ 3,700 Direct materials added during the month 52,900

Explanation / Answer

a) Equivalent unit = 28250+(6750*80%) = 33650 units

b) Cost per equivalent unit = (3700+52900)/33650 = 1.68 per equivalent unit

Using the weighted-average method, assign direct materials costs to the molding department’s output—specifically, the units transferred out to the packaging department and the units that remain in process in the molding department at month-end. (Do not round intermediate calculations.)

Weighted-Average Method Direct Materials Costs of units transferred out Direct materials (28250*1.68) 47517 Costs of ending work in process Direct materials 9083 Total costs assigned 56600

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