During April, the production department of a process manufacturing system comple

Question

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 82,000 were in process in the production department at the beginning of April and 328,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 104,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion.

The production department had $1,512,630 of direct materials and $991,230 of conversion costs charged to it during April. Also, its beginning inventory of $242,340 consists of $206,850 of direct materials cost and $35,490 of conversion costs.

1&2. Using the weighted-average method, compute the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output. (Round "Cost per EUP" to 2 decimal places.)

Equivalent Units of Production (EUP)- Weighted Average Method Units % Materials EUP—Materials % Conversion EUP—Conversion Equivalent units of production Cost per Equivalent Unit of Production Materials Conversion Total costs Costs Costs ÷ Equivalent units of production EUP EUP Cost per equivalent unit of production (rounded to 2 decimals) Total Costs to Account for: Total costs to account for: Total costs accounted for Difference due to rounding cost/unit Cost Assignment and Reconciliation Cost of units transferred out EUP Cost per EUP Total cost Direct materials Conversion Total costs transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials Conversion Total cost of ending work in process Total costs accounted for

Explanation / Answer

Production cost report :

Equivalent unit of production Units % material EUP-material % conversion EUP-conversion Units transferred out 410000 100% 410000 100% 410000 Ending work in process 104000 85% 88400 35% 36400 Equivalent unit of production 514000 498400 446400 Cost per equivalent unit of production Material Conversion Beginning work in process 206850 35490 Cost added 1512630 991230 Total cost 1719480 1026720 Equivalent unit of production 498400 446400 Cost per equivalent unit 3.45 2.30 Total cost to account for Beginning work in process 242340 Cost added during period 2503860 Total cost accounted for 2746200 Cost assignment and reconciliation Cost of units transferred out EUP Cost per EUP Total cost Direct material 410000 3.45 1414500 Conversion 410000 2.30 943000 Total cost accounted for 2357500 Cost of ending work in proces Direct material 88400 3.45 304980 Conversion 36400 2.30 83720 Total cost of ending work in process 388700 Total cost accounted for 2746200

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