PLEASE ANSWER!!! Passera Inc. manufactures a single product in a continuous proc

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PLEASE ANSWER!!!

Passera Inc. manufactures a single product in a continuous processing environment. All materials are added at the beginning of the process, and conversion costs are applied evenly throughout the process. To assign costs to inventories, the company uses weighted-average process costing The following information was available for 2016: Sales (selling price per unit, $40) $4,080,000 Actual manufacturing overhead Selling and administrative expenses 328,000 660,000 Unit costs of production: Direct materials (1 kilogram) 6.00 Direct labour (1/2 hour) Overhead Total 8.00 9.00 $23.00 Units transferred to finished goods Materials purchased Materials used in process 140,000 units 125,000 kilograms 136,000 kilograms An inventory count at year end (December 31, 2016) revealed that the inventories had the following balances: Raw materials work in process (45% complete) Finished goods 8,000 kilograms 22,000 units 45,000 units The January 1, 2016, work in process units are 70% complete. The unit cost of production was the same in 2016 as it was in 2015

Explanation / Answer

Units Costs Opening Balances - Raw Materials               19,000    114,000 Opening Balances - WIP 26000 465400 Opening Balances - Finished Goods                 7,000    161,000 Calculation of Opening Stock of Raw Materials (In KGS) Raw Materials - Dec 31, 2016                 8,000 Add: Material used in Process             136,000             144,000 Less: Material Purchased During the Year          (125,000) Raw Materials - Jan 1, 2016               19,000 Material Cost per Kg                          6 Raw Materials - Jan 1, 2016 in $             114,000 Calculation of Opening Stock of Finished Stock (In Units) Finished Goods - Dec 31, 2016               45,000 Add: Sold During the Year             102,000             147,000 Less: Produced During the Year          (140,000) Finished Goods - Jan 1, 2016                 7,000 Cost per Unit in $                       23 Finished Goods - Jan 1, 2016 in $             161,000 Calculation of WIP - Jan 1, 2016 Units Equivalent Units Material Conversion Cost WIP in the beginning (162000 - 136000) 26000 26000 18200 Started During July 136000 Units to Account for 162000 Units Completed and Transferred 140000 140000 140000 WIP in the end 22000 22000 9900 Units accounted For 162000 162000 149900 Cost of WIP Jan 1, 2016 Direct Materials - 26000 Units X $6 156000 Direct Labour - 18200 Units X $8 145600 Overhead - 18200 Units X $9 163800 Total Cost of WIP - Jan 1, 2016 465400

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