Browning Company had 8,700 units in beginning inventory with accumulated costs f

Question

Browning Company had 8,700 units in beginning inventory with accumulated costs for direct materials of $17,900, $16,500 direct labor, and $13,200 of overhead. During July, the company completed and transferred 50,000 units to finished goods. Costs incurred in the current period included $45,000 of direct materials, $58,500 of direct labor, and $46,800 of factory overhead. Ending inventory consisted of 12,000 units which were 80% complete with respect to materials and 50% complete with respect to labor and overhead. Compute the value assigned to ending inventory based on the weighted average method of inventory costing. SHOW Work would be helpful

Explanation / Answer

Statement of Equivalent Production

IN OUT

Statement of Cost

VAlue assigned to Ending Inventory

Material => 9600 * 1.12 => $10752

Labour => 6000 * 1.42 => $8520

Overheads => 6000 * 1.14 => $ 6840

TOTAL COST OF ENDING INVENTORY => $ 26112

Particulras Units Particulars Units Material % complete Material Equivalent units Labour % complete Labour Equivalent units Overahead % complete Overhead Equivalent units OP. WIP 8700 Completed 46700 100% 46700 100% 46700 100% 46700 Intoduced 50000 Closing WIP 12000 80% 9600 50% 6000 50% 6000 TOTAL 58700 58700 56300 52700 52700

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