10. BOGO, Inc. has two sequential processing departments, roasting and mixing. A

Question

10. BOGO, Inc. has two sequential processing departments, roasting and mixing. At the beginning ofthe month, the roasting department has 2,000 units in inventory, 70% complete as to materials. During the month the roasting department started 18,000 units. At the end of the month, the roasting department had 3,000 units in ending inventory, 90% complete as to materials. Note: The company uses the weighted average method to assign costs. Cost information is as follows: Beg Work in Process Inventory (Direct $3,230 Materials) Direct Materials added during the month 28,200 a. Calculate the equivalent units of production for materials (5 pts)

Explanation / Answer

EUP Physical Units Direct Materials Units completed and transferred 17000 17000 Ending WIP 3000 2700 20000 19700 a) Equivalent units of production for materials 19700 Answer b) Cost of material in beginning WIP $        3,230 Cost of material added $      28,200 Total material cost $      31,430 EUP for material 19700 Cost per EUP for materials $          1.60 c) Cost of direct materials for the finished goods inventory = 17000*1.6 = $      27,200

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