Weighted Average Method, Unit Cost, Valuing Inventories Manzer Enterprises produ

Question

Weighted Average Method, Unit Cost, Valuing Inventories

Manzer Enterprises produces premier raspberry jam. Output is measured in pints. Manzer uses the weighted average method. During January, Manzer had the following production data:

Required:

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

2. Calculate the unit cost for January. Round your answer to the nearest cent.
$per unit

3. Assign costs to units transferred out and EWIP. Do not round the unit cost in intermediate calculations. If required, round your final answers to the nearest cent.

Units in process, January 1, 60% complete 36,000 pints Units completed and transferred out 243,000 pints Units in process, January 31, 40% complete 65,000 pints Costs: Work in process, January 1 $54,000 Costs added during January 344,000

Explanation / Answer

1. Equivalent units for January:

2. the unit cost for January = Total cost / equivalent units = ($54000 + 344000 ) / 247400 = $1.61 per pint unit

3. Assign costs to units transferred out and EWIP =

Costs of units transferred out = 243000 * $1.61 = $391230

Costs of EWIP = 26000 * $1.61 = $41860

Units Particular Units Inventory 36000 Beginning WIP 36000 14400 (40%) 272000 Introduced and completed 207000 207000 (100%) goods transferred out 243000 Ending WIP 65000 26000 (40%) Equivalent units 247400

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