8. October 1, 2017, Alpha Company started a new production operation using the w

Question

8. October 1, 2017, Alpha Company started a new production operation using the weighted average method of process costing. During October, 9,000 units were started and 7,000 were transferred to finished goods. The October 31, work in process inventory was 100% complete as to material costs and 50% complete as to conversion costs. Material costs for the month of October were $27,000 and conversion costs were $40,000. Use this information to determine: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units) 1. the total costs transferred to finished goods inventory for October 2017 2. the cost that should be assigned to Alpha' work in process inventory at the end of October 2017

Explanation / Answer

Equivalent units Physical units Materials Conversion Units completed and transferred 7000 7000 7000 Ending inventory 2000 2000 1000 Total units 9000 9000 8000 Materials Labor Total costs 27000 40000 Equivalent units 9000 8000 Cost per Equivalent unit 3.00 5.00 1 Cost of units completed and transferred =7000*8 = 56000 2 Cost of work in process inventory at the end of October 2017=(2000*3)+(1000*5)= 11000

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