Question
Morrison Company had the equivalent units schedule and cost information for its Sewing Department for the month of December shown below. Direct Materials Conversion Costs
Morrison Company had the equivalent units schedule and cost information for its Sewing Department for the month of December shown below.
Direct Materials Conversion Costs
Units Completed
Add: Units in ending work in process x % complete: 45,000 45,000
10,000 x 100% direct materials 10,000 --------
10,000 x 45% conversion costs -------- 4,500
Equivalent units of output 55,000 49,500
Costs:
Work in Process, December 1
Direct materials $66,000
Conversion costs 14,000
Total Work in process $ 80,000
Current costs
Direct Materials $550,000
Conversions Costs 184,000
Total Current Costs $734,000
Required: 1. Calculate the unit cost for December, using the weighted average method. $_______ 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. Cost of goods transferred out $_______ Cost of EWIP $_______ Reconciliation cost to account for $_______ 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 $6.60 ($66,000/10,000), and the December unit materials cost is $12.22 ($550,000/45,000). The equivalent units in BWIP are 10,000, and the FIFO equivalent units are 45,000. 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 your answer to two decimal places. $________
Please show all steps so I can follow. Thanks
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