Exercise 4-9 Cost Assignment; Cost Reconciliation-Weighted-Average Method [LO2, LO4, LO5]

Kenton Industrial Corporation uses the weighted-average method in its process costing system. During April, the Baker Assembly Department completed its processing of 25,800 units and transferred them to the next department. The cost of beginning inventory and the costs added during April amounted to $696,860 in total. The ending inventory in April consisted of 2,800 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

	Materials		Labor		Overhead
Cost per equivalent unit	$	12.70	$	4.70	$	7.70

Required:

1.	Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

	Materials	Labor	Overhead
Equivalent units in ending work in process inventory

2.	Compute the cost of ending work in process inventory and of the units transferred to the next department for April.

	Materials	Labor	Overhead	Total
Cost of ending work in process inventory	$	$	$	$
Cost of units completed and transferred out	$	$	$	$

3.	Prepare a cost reconciliation for April. (Note: You will not be able to break the cost to be accounted for into the cost of beginning inventory and costs added during the month.)

Cost Reconciliation

Total cost to be accounted for

$

Total costs accounted for as follows:

(Click to select)Cost of ending work in process inventory,Cost of beginning work in process inventory,Costs added to production during the period

$

(Click to select)Cost of units completed and tranferred out,Cost of beginning work in process inventory,Costs added to production during the period

Total cost accounted for

$

Lindex Company uses a process costing system. The following data are available for one department for October:

		Percent Completed
	Units	Materials	Conversion
Work in process, October 1	50,000	90%	60%
Work in process, October 31	30,000	70%	50%

The department started 390,000 units into production during the month and transferred 410,000 completed units to the next department.

Required:

Compute the equivalent units of production for October, assuming that the company uses the weighted-average method of accounting for units and costs.

	Materials	Conversion
Equivalent units of production