Assigning Costs to Products: Weighted Average Method. Jennings Company uses the weighted average method for its process costing system. The Molding department at Jennings began January with $80,000$ units in work$-$in$-$process inventory, all of which were completed an transferred out during January. An additional $90,000$ units were started during the month, $30,000$ of which were completed and transferred out during January. A total of $60,000$ units remained in work$-$in$-$process inventory at the end of January and were at varying levels of completion, as shown in the following:

Direct materials $80$ percent complete

Direct labor $90$ percent complete

Overhead $90$ percent complete

The following cost information is for the Molding department at Jennings Company for the month of January:

Direct Materials Direct Labor Overhead Total

Beginning WIP inventory $$1,400,000$$$1,100,000$$$1,700,000$$$4,200,000$

Incurred during the month $$1,210,000$$$980,000$$$1,450,000$$$3,640,000$

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 $2)$ equal 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.

Attached below is a worksheet that you may use for this assignment. Please note there are two tabs $($Module $4$ Assignment.xlsx$).$ This assignment measures your ability to implement managerial accounting concepts that you learned about in chapter $4$ of our course text.

EXERCISES:

Production Cost Report: Weighted Average Method

Summary of Physical Units and Equivalent Unit Calculations $($step $1)$:

Units to be accounted for

EXERCISE $($continued$)$

Production Cost Report: Weighted Average Method $($continued$)$

Summary of costs to be accounted for $($step $2)$:

Calculation of cost per equivalent unit $($step $3)$:

Assign costs to units transferred out and units in ending WIP inventory $($step $4)$:

Explain the meaning of equivalent units: