Alpha Company, on March 1, 2017 has a beginning Work in Process inventory of zer
ID: 2395618 • Letter: A
Question
Alpha Company, on March 1, 2017 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. On March 1, Alpha started into production 10,000 units. At the end of the month there were 5,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 60% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP: Direct Material Direct Labor Factory Overhead $20,000 8,000 32,000 Alpha uses the weighted-average process costing method. Use this information to determine for the month of March: (Round& enter final answers to the nearest whole dollar.) 1. the total cost transferred to the finished goods inventoryExplanation / Answer
Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Total Opening WIP - 100% - Units started and completed 5,000.00 100% 5,000.00 5,000.00 100% 5,000.00 ending WIP = 10,000 - 5,000 5,000.00 100% 5,000.00 5,000.00 60% 3,000.00 Equivalent Units 10,000.00 8,000.00 Opening WIP Costs - - Current Month Costs 20,000.00 40,000.00 Total costs 20,000.00 40,000.00 Cost per Equivalent units 2.00 5.00 Ending WIP Units 5,000.00 3,000.00 Cost of Ending WIP 10,000.00 15,000.00 25,000.00 Units completed and transferred out 5,000.00 5,000.00 Cost of Units completed and transferred out 10,000.00 25,000.00 35,000.00
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