computing unit costs; cost of units finished; cost of units in process The follo

Question

computing unit costs; cost of units finished; cost of units in process The following data appeared in the accounting records of Craig E63 nufacturing Inc., which uses the weighted average cost method: Man Started in p Finished and transferred Work in process, end of month Materials... . 12,000 units 10,500 units 1,500 units (2/5 completed) $36,000 $44,400 $22,200 Factory overhead Case 1-All materials are added at the beginning of the process, and labor and factory overhead are added evenly throughout the process. Case 2-One-half of the materials are added at the start of the manufacturing process, and the balance of the materials is

Explanation / Answer

Answer a Calculation of Equivalent units of production Physical Units % Complete with respect to Material Equivalent units for material cost % Complete with respect to Conversion Equivalent units for Conversion cost Units finished and transferred 10500 100% 10500 100% 10500 Units in ending work in process 1500 100% 1500 40% 600 Equivalent Units 12000 11100 Calculation of unit cost per equivalent unit Material Conversion Cost added during the period $36,000.00 $66,600.00 / Equivalent Units 12000 11100 Cost per equivalent unit $3.00 $6.00 Calculation of cost of units finished Cost Material cost (10500 units * $3) $31,500.00 Conversion cost (10500 units * $6) $63,000.00 Cost of units Finished $94,500.00 Calculation of cost of units in process Cost Material cost (1500 units * $3) $4,500.00 Conversion cost (600 units * $6) $3,600.00 Cost of units in process $8,100.00

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