Nonuniform Inputs, Weighted Average

Carter Inc. had the following production and cost information for its fabrication department during April (with materials added at the beginning of the fabrication process):

Production:

Units in process, April 1, 50% complete with respect to conversion

10,000

Units completed

65,200

Units in process, April 30, 60% complete

12,000

Costs:

Work in process, April 1:

Materials

$40,980

Conversion costs

15,100

Total

$56,080

Current costs:

Materials

$125,000

Conversion costs

210,000

Total

$335,000

Carter uses the weighted average method.

Required:

1.Plan equivalent units schedule.

Carter Inc.

Schedule of Equivalent Units

(Weighted Average Method)

Materials

Conversion

Units completed

Add: Units in ending WIP x Percent complete

%

%

Equivalent units of output

Feedback

Depending on the process, different percentage completion figures for manufacturing inputs are used in the calculation of equivalent units. Note that materials are added at the beginning of the process so there will be a different completion percentage for materials and conversion costs. Typically, conversion costs are added uniformly and materials are added at discrete points in the production process. Materials added at the beginning are 100% complete And materials added at the end are 0% complete.

Review the "How to Calculate Equivalent Units, Unit Costs, and Valuing Inventories with Nonuniform Inputs" example in your text.

2.Calculate the unit cost. Round all intermediate calculations and final answer to the nearest cent.

$per unit

3.Calculate the cost of units transferred out and the cost of EWIP. In your calculations round unit cost to the nearest cent and your final answers to the nearest dollar.

Cost transferred out

$

Cost of ending work in process