Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cornerstone Exercise 6.10 (Algorithmic) Cost Information and the Weighted Average Method Morrison Company had the equivalent units schedule and cost information for its Sewing Department

Cornerstone Exercise 6.10 (Algorithmic) Cost Information and the Weighted Average Method

Morrison Company had the equivalent units schedule and cost information for its Sewing Department for the month of December, as shown below.

Direct Materials Conversion Costs
Units completed 43,000 43,000
Add: Units in ending work in process
Percentage complete:
15,000 100% direct materials 15,000
15,000 45% conversion materials 6,750
Eqivalent units of output 58,000 49,750
Costs:
Work in process, December 1:
Direct materials $65,000
Conversion costs 12,000
Total work in process $77,000
Current costs:
Direct materials $580,000
Conversion costs 182,000
Total current costs $762,000

Required:

1. Calculate the unit cost for December, using the weighted average method. Do NOT round interim calculations and, if required, round your answer to the nearest cent. $ per equivalent unit

2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile the costs assigned with the costs to account for.

Cost of goods transferred out:

Units completed $
Cost of EWIP
Total costs assigned (accounted for) $

Reconciliation Cost to account for:

BWIP $
Current (December)
Total $

3. What if you were asked to show that the weighted average unit cost for materials is the blend of the November unit materials cost and the December unit materials cost? The November unit materials cost is $4.33 ($65,000/15,000), and the December unit materials cost is $13.49 ($580,000/43,000). The equivalent units in BWIP are 15,000, and the FIFO equivalent units are 43,000. Calculate the weighted average unit materials cost using weights defined as the proportion of total units completed from each source (BWIP output and current output). Do NOT round interim calculations and, if required, round your answer to the nearest cent. $ per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

3. Define the roles individuals play in a group

Answered: 1 week ago