Bingham Corporation uses the weighted-average method in its process costing syst

Question

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

Carter 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 Percent complete for materials 80% Percent complete for conversion 15% Units started into production during the month 6,000 Units transferred to the next department during the month 5,800 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 1,400 Percent complete for materials 70% Percent complete for conversion 40% Required: Calculate the equivalent units for materials (using the weighted-average method) for the month in the first processing department (Points : 25) Percent Complete Unit reconciliation units material conversion beginning 400 80% 15% Started 6,800 100% units to account for 7,200 completed and transferred out 5,800 100% 100% WIP ending 1,400 70% 40% units to account for 7,200 Cost per equivalent unit calculation Materials Conversion Total WIP Beg $6,900.00 $2,500.00 $64,395.00 cost incurred during period $112,500.00 $210,300.00 $322,800.00 total costs to account for $119,400.00 $212,800.00 $387,195.00 units completed 5,800 5,800 equivalent units ending WIP 980 560 Total equivalent units 6,780 6,360 cost per equivalent unit $17.61 $33.46

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