Calculate Equivalent Units, Unit Costs, and Transferred Costs - Weighted Average Method

Monroe Company processes a food seasoning powder through its Compounding and Packaging departments. In yhe Compounding Department, direct materials are added at the beginning of the process, and direct labor and manufacturing overhead are incurred evenly throughout the process. Monroe uses the weighted average method. Costs in the Compounding Department can be summarized as follows:

At August 31, 2019, 3,00 units were in process, 30% complete with respect to conversion costs.

Calculate the following for the compounding Department:

a.) Equivalent units for materials and conversion costs during August

b.) Costs per equivalent units for materials and conversion costs

c.) Total cost of units transferred to the Packaging Department

d.) Inventory cost at August 31, 2019.

P4-2A. Calculate Equivalent Units, Unit Costs, and Transferred Costs-Weighted Average Method Mon- roe Company processes a food seasoning powder through its Compounding and Packaging departments. rect labor and manufacturing overhead are incurred evenly throughout the process. Monroe uses the Department. in the January 31 inventory. sion costs. In the Compounding Department, direct materials are added at the beginning of the process , and die weighted average method. Costs in the Compounding Department can be summarized as follows: Inventory, August 1, 2019 (2,000 units, 40% complete) LO Direct materials Conversion costs Current period (31,000 units started) Direct materials. Direct labor. Manufacturing overhead. 980 4,100 33,010 62,560 75,789 $171,359 At August 31, 2019, 3,000 units were in process, 30% complete with respect to conversion costs. Required Monroe Company Compounding Department Flow of Units and Equivalent Units Calculation August 2019 Production Where do the units come from? Where do the units go? % Work Done? Equivalent Units Direct % Work Conversion Materials Done? Costs Beginning Inventory Started Total Complete/Transferred Ending Inventory Total a a. Product Cost Report Where do the costs come from? Direct Materials Conversion Costs Beginning Inventory Current Total Costs to Account For $ = Total Equivalent Units 0 Average cost / Equivalent unit b. b. Where do the costs go? Complete / Transferred: Direct Materials Conversion costs Cost of Goods Manufactured Ending Inventory: Direct Materials Conversion costs Cost of Ending Inventory Total Costs Allocated d. $