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Case 4-63 Passera Inc. manufactures a single product in a continuous processing environment. All materials are added at the beginning of the process, and conversion

Case 4-63

Passera Inc. manufactures a single product in a continuous processing environment. All materials are added at the beginning of the process, and conversion costs are applied evenly throughout the process. To assign costs to inventories, the company uses weighted-average process costing. The following information was available for 2016:
Sales (selling price per unit, $40) $4,080,000
Actual manufacturing overhead 660,000
Selling and administrative expenses 328,000
Unit costs of production:
Direct materials (1 kilogram) $ 6.00
Direct labour (1/2 hour) 8.00
Overhead 9.00
Total $23.00
Units transferred to finished goods 140,000 units
Materials purchased 125,000 kilograms
Materials used in process 136,000 kilograms
An inventory count at year end (December 31, 2016) revealed that the inventories had the following balances:
Raw materials 8,000 kilograms
Work in process (45% complete) 22,000 units
Finished goods 45,000 units
The January 1, 2016, work in process units are 70% complete. The unit cost of production was the same in 2016 as it was in 2015. Calculate the following amounts for Passera Inc.:
The opening (January 1, 2016) balance in units and costs of (1) raw materials, (2) work in process, and (3) finished goods.
Units Cost
(1) Opening Balances Raw Materials

$
(2) Opening Balances Work in Process

$

(3) Opening Balances Finished Goods

$

The equivalent units for 2016 for (1) materials and (2) conversion costs.
Material Conversion
Equivalent units for 2016

The total cost for 2016 for (1) materials used and (2) conversion applied.
Material Conversion
Total cost for 2016

The cost of ending work in process for 2016.
Cost assigned to ending work in process $

The cost of units completed and transferred to finished goods.
Cost of units completed and transferred to finished goods $

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