Progressive Company produces one product in a process-costing syst several depar
ID: 2553592 • Letter: P
Question
Progressive Company produces one product in a process-costing syst several departments. The first department's costs and output for the month of April are as follows: em involving Units: Beginning WIP* Started during April Completed during April Ending WIP** 15,000 units 140,000 units 120,000 units 35,000 units Costs: Be ginning WIP : $25,750 Direct materials Conversion costs 3.225 $28,975 168,000 186,000 $382,975 Direct materials added in current month Conversion costs in current month Total costs to account for * 100% cormpleted for materials, 40% completed for conversion costs ** 100% completed for materials, 30% completed for conversion costs Required Compute the cost of work completed and the cost of the ending work-in-process inventory using the weighted-average method.Explanation / Answer
a) equivalent unit of material = (120000+35000) = 155000 units
equivalent unit of conversion = 120000+(35000*30%) = 130500 units
Cost per equivalent unit of material = (25750+168000)/155000 = 1.25 per unit
Cost per equivalent unit of conversion = (3225+186000)/130500 = 1.45 per unit
Cost of units transferred out = (1.25+1.45)*120000 = 324000
Cost of ending work in process = (35000*1.25+10500*1.45) = 58975
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