Bachelet Inc. uses the weighted-average method in its process costing system. Th
ID: 2398184 • Letter: B
Question
Bachelet Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Work in process, beginning: 400 Units in process Percent complete with respect to materials Percent complete with respect to conversion 90% 40% Costs in the beginning inventory Materials cost Conversion cost 756 $4,448 Units started into production during the month Units completed and transferred out 13,000 13,000 Costs added to production during the month: Materials cost Conversion cost 29,949 $362,127 Work in process, ending: 100 Units in process Percent complete with respect to materials Percent complete with respect to conversion 508 30%Explanation / Answer
Answer
Equivalent Units of production [EUP]
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
13000
100%
13000
100%
13000
Closing WIP
100
50%
50
30%
30
Total
13100
Total
13050
Total
13030
EUP – Material = 13,050 units
EUP – Conversion cost = 13,030 units
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Beginning WIP Inventory Cost
$ 756.00
$ 4,448.00
$ 5,204.00
Cost incurred during period
$ 29,949.00
$ 362,127.00
$ 392,076.00
Total Cost to be accounted for
$ 30,705.00
$ 366,575.00
$ 397,280.00
Total Equivalent Units
13050
13030
Cost per Equivalent Units
$ 2.35
$ 28.13
Cost per EUP – Material = $ 2.35
Cost per EUP – Conversion cost = $ 28.13
----Working---
Cost accounted for
Ending Work In Progress:
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
50
$ 2.35
$ 117.50
Conversion Cost
30
$ 28.13
$ 843.90
$ 961.40
Units Transferred:
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
13000
$ 2.35
$ 30,550.00
Conversion Cost
13000
$ 28.13
$ 365,690.00
$ 396,240.00
Total Cost accounted for
$ 397,201.40
Answer: Requirement ‘c’ Cost of Units Transferred = $ 396,240
Answer: Requirement ‘d’ Cost of ending WIP = $ 961.40
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
13000
100%
13000
100%
13000
Closing WIP
100
50%
50
30%
30
Total
13100
Total
13050
Total
13030
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