The following information concerns production in the Finishing Department for Ju
ID: 2343376 • Letter: T
Question
The following information concerns production in the Finishing Department for July. The Finishing Department uses the weighted average cost (WAC) method.
a. Determine the number of units in work-in-process inventory at the end of the month.
b. Determine the number of units to be accounted for and to be assigned costs and the equivalent units of production for July.
Work in Process—Finishing Department Date Item July 1 Bal., 20,000 units, 40% completed 24,600 31 Direct materials, 144,000 units started 345,000 31 Direct labor 163,200 31 Factory overhead 86,700 31 Goods transferred, 142,500 units 578,550 31 Bal., ? units, 60% completed 40,950Explanation / Answer
Part A
number of units in work-in-process inventory at the end of the month = beginning balance + Units started - goods transferred = 20000+144000-142500 = 21500 units
Part B
Units to be accounted for = 164000 units
Beginning work in process.................... 20000
Units started during the period.............. 144000
Total............................ .......... ............ ......164000
Units to be assigned costs = 164000 units
Transferred to finished goods............ ..... 142500
Inventory in process, ending........................ 21500
Total units ................................. .......... .......164000
Equivalent units of production = 155400 units
Transferred to finished goods.......... 142500
Inventory in process, ending............. 12900 (21500 * 60%)
Total units....................…......…..….........155400
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