(TCO F) Bingham Corporation uses the weighted-average method in its process cost
ID: 2345968 • Letter: #
Question
(TCO F) Bingham Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below.Work in process, beginning: Units in beginning work-in-process inventory 400
Materials costs $6,900
Conversion costs $2,500
Percentage complete for materials 80%
Percentage complete for conversion 15%
Units started into production during the month 6,000
Units transferred to the next department during the month 5,000
Materials costs added during the month $112,500
Conversion costs added during the month $210,300
Ending work in process:
Units in ending work-in-process inventory 1,200
Percentage complete for materials 60%
Percentage complete for conversion 30%
Required: Calculate the equivalent units for materials (using the weighted-average method) for the month in the first processing department.
Explanation / Answer
Statemennt of equivalent units of production Particulars % of completion Equivalent units Equivalent units Produced during the period Beginning WIP (400 Units): Materials costs 80% 160 40 Conversion costs 15% 30 170 Beginning Stock 190 210 Units started for production-6000 Units sold- 5200 Units produced and sold= 5200-400= 4800 Units produced and sold during the period 100% 4800 4800 Closing WIP (1200 Units): Materials costs 60% 360 360 Conversion costs 35% 210 210 570 570 Total Equivalent unnits produced during the period 5580 Process cost of production Total cost during the period Materials costs added during the month $112,500 Conversion costs added during the month $210,300 Total cost during the period $322,800 Cost per unit of equivalent production ( $322800/5580) $57.85
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