Required information Use the following information for the Exercises below. The

Question

Required information Use the following information for the Exercises below. The following information applies to the questions displayed below.J During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 63,000 were in process in the production department at the beginning of April and 252,000 were started and completed in April. April's beginning inventory units were 75% complete with respect to materials and 25% complete with respect to conversion. At the end of April, 85,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion. Exercise 20-9 Weighted average: Costs assigned to output and inventories LO C2 The production department had $825,945 of direct materials and $707,955 of conversion costs charged to it during April. Also, its beginning inventory of $155,675 consists of $131,555 of direct materials cost and $24,120 of conversion costs 1&2. Using the weighted-average method, compute the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department's output. (Round "Cost per EUP" to 2 decimal places.)

Explanation / Answer

1) Eqiuivalent units of production(EUP)-Weighted Average method Units % Materials EUP-Materials % Conversion EUP-Conversion Units completed and transferred out              3,15,000 100%                  3,15,000 100%            3,15,000 Ending work in process units                  85,000 80%                      68,000 30%                25,500 Euivalent units of production              4,00,000                  3,83,000            3,40,500 Working: Units completed from beginning work in process                 63,000 Units completed from current period              2,52,000 Total units completed during this period              3,15,000 2) Cost per Equivalent units of production Materials Conversion Cost of beginning work in process $              1,31,555 $           24,120 Cost incurred during current period $              8,25,945 $        7,07,955 Total cost $              9,57,500 $        7,32,075 / Equivalent units of production                  3,83,000            3,40,500 Cost per Equivalent unit of production(rounded to 2 decimals) $                      2.50 $                2.15 3) Total cost to account for: Beginning work in process $              1,55,675 Costs incurred during this period: Material $         8,25,945 Conversion $         7,07,955 $           15,33,900 Total cost to account for $           16,89,575 Total cost accounted for $           16,89,575 Difference due to rounding cost/Unit 0 4) Cost assignment and reconcilation: Cost of units transferred out EUP Cost per EUP Total Cost Direct Materials              3,15,000 $                      2.50 $              7,87,500 Conversion              3,15,000 $                      2.15 $              6,77,250 Total cost transferred out $     14,64,750 Cost of ending work in process Direct Materials                 68,000 $                      2.50 $              1,70,000 Conversion                 25,500 $                      2.15 $                  54,825 Total cost of ending work in process $        2,24,825 Total costs accounted for $     16,89,575

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