Equivalent Units and Product Cost ReportWeighted Average Method

In its first months operations (January 2016), Allred Companys Department 1 incurred charges of $120,000 for direct materials (10,000 units), $33,000 for direct labor, and $58,000 for manufacturing overhead. At month- end, 8,800 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costs.

Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:

a. The equivalent units of materials and conversion costs.

b. The cost per equivalent unit of materials and conversion costs.

c. The total cost assigned to the units transferred out.

d. The total cost assigned to the ending inventory.

e. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.

Round average cost per equivalent unit to two decimal places, if applicable.

Round other answers to the nearest whole number, when appropriate.

Allred Company Department1 Flow of Units and Equivalent Units Calculation Equivalent Units 96 Work done Direct Materials % Work Conversion Done Costs Complete/Transferred Ending Inventory Total a