Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I struggling to solve #1,2,3. Can please help me show me step by step how you found the answer. Cost Information and the Weighted Average

I struggling to solve #1,2,3. Can please help me show me step by step how you found the answer.

image text in transcribed

image text in transcribed

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 40,000 40,000 Add: Units in ending work in process x Percentage complete: 10,000 x 100% direct materials 10,000 10,000 x 40% conversion materials 4,000 Eqivalent units of output 50,000 44,000 Costs: Work in process, December 1: Direct materials $62,000 Conversion costs 10,000 Total work in process $72,000 Current costs: Direct materials $520,000 Conversion costs 188,000 Total current costs $708,000 Required: 1. Calculate the unit cost for December, using the weighted average method. Round interim calculations to the nearest cent and, if required, round your answer to the nearest cent. 15.34 X 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. Round interim calculations to the nearest cent and, if required, round your answer to the nearest dollar. Cost of goods transferred out: Units completed Cost of EWIP Total costs assigned (accounted for) Reconciliation Cost to account for: BWIP 72,000 Current (December) 708,000 Total 780,000 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 $6.20 ($62,000 / 10,000), and the December unit materials cost is $13.00 ($520,000 / 40,000). The equivalent units in BWIP are 10,000, and the FIFO equivalent units are 40,000. 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 interim calculations to the nearest cent 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

Value Based Management Context And Application

Authors: Glen Arnold, Matt Davies

1st Edition

0471899860, 978-0471899860

More Books

Students also viewed these Accounting questions