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:
18,000 100% direct materials		18,000
18,000 40% conversion materials						7,200
Equivalent units of output		61,000				50,200
Costs:
Work in process, December 1:
Direct materials						$68,000
Conversion costs						11,000
Total work in process						$79,000
Current costs:
Direct materials						$520,000
Conversion costs						185,000
Total current costs						$705,000

Required:

1. Calculate the unit cost for December, using the weighted average method. Round final answer to the nearest cent. (NOTE: retain unrounded interim amounts for use in part 2.) $fill in the blank 1 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. Using interim amounts from part 1 (unrounded amounts), compute each amount. Then round only final answers to the nearest dollar.

Cost of goods transferred out:

Units completed	$fill in the blank 2
Cost of EWIP	fill in the blank 3
Total costs assigned (accounted for)	$fill in the blank 4

Reconciliation Cost to account for:

BWIP	$fill in the blank 5
Current (December)	fill in the blank 6
Total	$fill in the blank 7

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 $3.78 ($68,000 / 18,000), and the December unit materials cost is $12.09 ($520,000 / 43,000). The equivalent units in BWIP are 18,000, 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). Round final answer to the nearest cent. $fill in the blank 8 per unit