Acct Chap 5 Problems.xlsx - Weighted Average Method Step 1...

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Weighted Average Method:Step 1: Compute the equivalent units of productionPercent Complete Shaping and Milling Department UnitsMaterials Beginning work in process inventory40050%Units started into production in May6,800Units completed during May andtransferred to the next department6,100Ending work in process inventoryShaping and Milling Department Materials Conversion Units transferred to the next department 6,1006,100Equivalent units in ending work in process inventory:Materials: units*percentage200Conversion: units*percentage80Equivalent units of production 6,3006,180Step 2: Compute the cost per equivalent unitMaterialsConversionCost of beginning work in process inventory5,5001,700Costs added during the period158,700120,400Total cost\$164,200 \$122,100 Given this cost information…Shaping and Milling DepartmentCosts per Equivalent UnitMaterialsConversionCost of beginning work in process inventory5,5001,700Costs added during the period 158,700120,400Total cost (a) \$164,200 \$122,100 Equivalent units of production (b) 6,3006,180Cost per equivalent unit (a) ÷ (b)\$26.06 \$19.76 Step 3: Assign costs to unitsShaping and Milling DepartmentCosts of Ending Work in Process Inventory and the Units Transferred OutMaterialsConversionEnding work in process inventory:Equivalent units (a)20080\$26.06 \$19.76 Cost per equivalent unit (b)
Cost of ending work in process inventory (a) × (b)\$5,213 \$1,581 Units completed and transferred out:Units transferred to the next department (a)6,1006,100Cost per equivalent unit (b) \$26.06 \$19.76 Cost of units transferred out (a) × (b) \$158,987 \$120,519 Step 4: Prepare cost reconciliation reportShaping and Milling DepartmentCost ReconciliationCosts to be accounted for: