Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Fever Corporation uses the weighted average method of process costing. The compa

ID: 2342076 • Letter: F

Question

Fever Corporation uses the weighted average method of process costing. The company has the following information for the period:

Beginning Work in Process: 2000 units 100% complete for materials, 75% complete for conversion costs

Units started during the period: 10,000

Ending work in process: 4,000 units 75% complete for materials, 50% complete for conversion costs

Costs for the period:

Beginning work in process: Materials: $1,100 Conversion Costs: $2,000

Costs added during the period: Materials: $11,000 Conversion Costs: $30,000

  

A) What are the total units to account for?  

B) How many units were completed during the month?  

C) What are the equivalent units for materials?  

D) What are the equivalent units for conversion?  

E) What is the cost per equivalent unit for materials? $

F) What is the cost per equivalent unit for conversion? $

G) What is the cost assigned to units completed and transferred out? $

H) What is the cost assigned to units in ending work in process? $

I) What are the total costs to account for? $

Explanation / Answer

Solution A:

Total units to account for = Units in beginning WIP + Unit started = 2000 + 10000 = 12000 units

Solution B:

Units completed during the month = begining units + Units started - Units in ending WIP

= 2000 + 10000 - 4000 = 8000 units

Solution C and D:

Solution E and F:

Solution G and H:

Solution I:

Total cost to account for = Cost of beginning WIP + Cost added durint the period

= ($1,100 + $2,000) + ($11,000 + $30,000) = $44,100

Computation of Equivalent unit of Production - Weighted Average Particulars Physical Units Material Conversion Units to account for: Beginning WIP 2000 Add: Unit started into production 10000 Total physical units to account for 12000 Units Accounted for: Unit completed & Transferred out 8000 8000 8000 Closing WIP: 4000 Material (75%) 3000 Conversion (50%) 2000 Equivalent units of production 12000 11000 10000