2. Department A had 10,000 units in the beginning work in process that is 100% completed with respect to material and 55% completed with respect to conversion costs. 12,000 units were added during the period and 4,000 units remain in ending work-in- process inventory. The ending inventory were 40% completed. Required: a. What was the number of equivalent units of production for the period with respect to material and conversion costs if process costing, weighted average costing method is used to cost inventories? b. What is the cost of units completed and transferred. c. What is the cost of the units in ending work in process. Quantity Schedule - Equivalent Units of Production - Weighted Average cost method Note: The weighted average cost method disregards the stage of completion of the beginning work in process and treats all production like they were all started and completed in the current period. Therefore, you should disregard the percentage of completion of the beginning work in process in the quantity schedule. All that are completed is assumed as if they were all started and completed during this period. 1. QUANTITY SCHEDULE (weighted average) Units Material Conversion Work-in-Process, Beginning 5,000 Units Added Quantity to be accounted for 10,000 15.000 Equivalent Units Of Production Units Material Conversion Quantity Accounted for as Follows: Completed and Transferred: (12,000 units completed) 12,000 12.000 12,000 Work in Process Ending Inventory 3,000 3,000 1.050 15.000 15.000 13.050 Quantity Accounted for Computation of Cost Per Unit for #1 Weighted average cost method Total Material Conversion Cost Cost Cost Cost in WIP-Beg. $1,800,000 800,000 1,000,000 Current Cost Added 57.000.000 $2.000.000 55.000.000 Cost to be acctd. For $8.800,000 $2.800.000 $6.000.000 Cost Per Unit: $2,800,000 $6,000,000 15,000 13,050 Cost Per Unit $646.436782 $186,666667 5459.770115 COST ACCOUNTED FOR AS FOLLOWS: Total Material Conversion Completed & Transferred: $7,757.241.38 12000x5646.436782 Cost of WIP-Endg. (Material *1,042,758.62 560,000.001 482,758.621 3,000 x $186.6667; (Conversn. 1050 x $459.770115 Cost Acctd for: $8.800,000 "Completed: 12000(186,667)+1 2000(459.770115) = 12000(646.436782 Note: The weighted average cost method disregards the stage of completion of the beginning work in process and treats all production like they were all started and completed in the current period. Therefore, you should disregard the percentage of completion of the beginning work in process in the quantity schedule. All that are completed is assumed as if they were all started and completed during this period. 1. QUANTITY SCHEDULE (weighted average) Units Material Conversion Work-in-Process, Beginning 5.000 Units Added 10,000 Quantity to be accounted for 15.000 Equivalent Units Of Production Quantity Accounted for as Units Material Conversion Follows: Completed and Transferred: (12.000 units completed) 12,000 12.000 12,000 Work-in-Process Ending Inventory 3.000 3.000 1.050 Quantity Accounted for 15.000 15.000 13.050 Computation of Cost Per Unit for #1 Weighted average cost method Total Material Conversion Cost Cost Cost Cost in WIP-Beg. $1,800,000 800,000 1,000,000 Current Cost Added 57,000,000 $2,000,000 $5,000,000 Cost to be acctd. For 58,800,000 $2,800,000 $6,000,000 Cost Per Unit: $2,800,000 $6,000,000 15,000 13.050 Cost Per Unit $646.436782 $186.666667 S459770115 COST ACCOUNTED FOR AS FOLLOWS: Total Material Conversion Completed & Transferred: 57,757,241.38 12000x$646.436782 Cost of WIP Endg. (Material 1,042,758.62 560,000.001 482,758.621 3,000 x $186,6667; (Conversn. 1050 x $459.770115 Cost Acctd for: 58.800.000 *Completed: 12000(186.667)+12000(459.770115) - 12000(646.436782-57,757.241.38 2. Department Ahad Toms mure og ork in process
