25. Assigning Costs to Products: Weighted Average Method. Sydney, Inc., uses the weighted average method for its

process costing system. The Assembly department at Sydney, Inc., began April with 6,000 units in work-in-process

inventory, all of which were completed and transferred out during April. An additional 8,000 units were started during

the month, 3,000 of which were completed and transferred out during April. A total of 5,000 units remained in workin-

process inventory at the end of April and were at varying levels of completion, as shown in the following.

Direct Materials	40 percent complete
Direct Labor	30 percent complete
Overhead	50 percent complete

26. The following cost information is for the Assembly department at Sydney, Inc., for the month of April.

	Direct Materials	Direct Labor	Overhead	Total
Beginning WIP inventory	$300,000	$350,000	$250,000	$900,000
Incurred during the month	$180,000	$200,000	$170,000	$550,000

236

Incurred during the month $180,000 $200,000 $170,000 $550,000

27. Required:

a. Determine the units to be accounted for and units accounted for; then calculate the equivalent units for direct

materials, direct labor, and overhead. (Hint: This requires performing step 1 of the four-step process.)

b. Calculate the cost per equivalent unit for direct materials, direct labor, and overhead. (Hint: This requires performing

step 2 and step 3 of the four-step process.)

c. Assign costs to units transferred out and to units in ending WIP inventory. (Hint: This requires performing step 4 of the

four-step process.)

d. Confirm that total costs to be accounted for (from step 2) equals total costs accounted for (from step 4). Note that

minor differences may occur due to rounding the cost per equivalent unit in step 3.

e. Explain the meaning of equivalent units.