Nguyen Enterprises produces premier strawberry jam. Output is measured in litres

Question

Nguyen Enterprises produces premier strawberry jam. Output is measured in litres. Nguyen uses the weighted average method. During January, Nguyen had the following production data:

Required:

1. Using the weighted average method, calculate the equivalent units for January.

2. Calculate the unit cost for January. Round your answer to the nearest cent and use in subsequent requirements.

3. Assign costs to units transferred out and EWIP. If required, round your final answers to the nearest cent.

Cost of goods transferred out: $

EWIP: $

Units in process, January 1, 60% complete 36,000 litres Units completed and transferred out 243,000 litres Units in process, January 31, 40% complete 76,000 litres Costs: Work in process, January 1 $54,000 Costs added during January $355,000

Explanation / Answer

1 Equivalent units for January = 243000+(76000*40%)= 273400 2 Unit cost for January = (54000+355000)/273400= $1.50 3 Cost of goods transferred out 364500 =243000*1.5 EWIP 45600 =76000*40%*1.5

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