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		44,000				44,000
Add: Units in ending work in process
Percentage complete:
19,000 100% direct materials		19,000
19,000 45% conversion materials						8,550
Eqivalent units of output		63,000				52,550
Costs:
Work in process, December 1:
Direct materials						$66,000
Conversion costs						15,000
Total work in process						$81,000
Current costs:
Direct materials						$570,000
Conversion costs						185,000
Total current costs						$755,000

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 $3.47 ($66,000/19,000), and the December unit materials cost is $12.95 ($570,000/44,000). The equivalent units in BWIP are 19,000, and the FIFO equivalent units are 44,000. 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