Weighted Average Method, Unit Cost, Valuation of Goods Transferred Out and Endin
ID: 2424549 • Letter: W
Question
Weighted Average Method, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process
Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department:
Costs assigned to beginning work in process: direct materials, $90,000; conversion costs, $33,750. Manufacturing costs incurred during April: direct materials, $75,000; conversion costs, $220,000. Holmes uses the weighted average method.
Required:
1. Compute the unit cost for April. If required, round your answer to the nearest cent.
$ per equivalent unit
2. Determine the cost of ending work in process and the cost of goods transferred out.
Cost of ending work in process $ Cost of goods transferred out $Explanation / Answer
Statement of Equivalent production Particulars Materials %completion Equivalent mat Conv Units %completion Equivalent Conv Units Total Units completed 25,000.00 100.00% 25,000.00 25,000.00 100.00% 25,000.00 Closing WIP(7900-6200) 8,000.00 100.00% 8,000.00 8,000.00 50.00% 4,000.00 Equivalent units 33,000.00 29,000.00 Opening WIP 90,000.00 33,750.00 123,750.00 Current Month Costs 75,000.00 220,000.00 295,000.00 Total costs 165,000.00 253,750.00 418,750.00 Per Unit Cost 5.00 8.75 Total units Transferred 25,000.00 25,000.00 Total costs of units t/f 125,000.00 218,750.00 343,750.00 Ending WIP units 8,000.00 4,000.00 Cost of ending WIP 40,000.00 35,000.00 75,000.00
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