Morrison Company had the equivalent units schedule and cost information for its Sewing Department for the month of December, as shown below. Units completed Add: Units in ending work in process x Direct Materials 40,000 Conversion Costs 40,000 Percentage complete: 12,000 x 100% direct materials 12,000 12,000 x 40% conversion materials 4,800 Eqivalent units of output 52,000 44,800 Costs: Work in process, December 1: Direct materials Conversion costs Total work in process Current costs: Direct materials $68,000 14,000 $82,000 $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.) 15.75 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 630,000 X Incorrect. Cost of EWIP 264,600 X Total costs assigned (accounted for) 894,600 X Reconciliation Cost to account for: BWIP 82,000 V Current (December) Total 705,000 $787,000 V Reconciliation Cost to account for: BWIP Current (December) Total 82,000 705,000 787,000 V 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 $5.67 ($68,000 / 12,000), and the December unit materials cost is $13.00 ($520,000/ 40,000). The equivalent units in BWIP are 12,000, 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 final answer to the nearest cent. 211.11 X per unit Feedback Check My Work 1. The weighted average method counts prior-period work and costs in BWIP as if they belong to the current period; so the unit cost is obtained by dividing the sum of the costs in BWIP and the current-period costs by the weighted average equivalent output. The resulting unit cost is a blend of the prior-period unit cost and the actual current-period unit cost. 2. The valuation of cost of goods transferred out is simplified as it is the total unit cost multiplied by the units completed.