PART 4 Process Costing - Weighted Average General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in-process as of January 1 were 3,700 figurines at a cost of $27,128.00. Of this amount, $6,068.00 was from raw materials added, $14,040.00 for labor and $7,020.00 for overhead. These 3,700 figurines were assumed to be 30.00% complete as to labor and overhead. During January, 24,000 units were started, $38,252.00 of materials and $68,707.50 of labor costs were incurred. The 3,500 figurines that were in-process at the end of January were assumed to be 25.00% complete to labor and overhead. All figurines in January passed inspection. 11 20 MOLDING 10 Physical Flow of Units Work-in-Process - Beginning 21 Units Started this Period 22 Units to Account for 23 24 Total transferred out 33 Work-in-Process-Ending 34 Total Accounted for 35 36 37 46 Equivalent Units Material (Round to two places, ##.###.##) 47 48 49 Equivalent Units Conversion (Round to two places, ##.###.##) 50 59 60 61 Total cost of Material (Round to two places, ##.###.##) 62 63 72 Total cost of Conversion (Round to two places, ##.###.##) 73 Total cost to account for (Round to two places, ##.###.) 74 75 76 85 Cost per equivalent unit of Material (Round to two places, ###.##) 86 87 88 Cost per equivalent unit of Conversion (Round to two places, ###.##) 89 98 99 100 101 102 111 Cost of the ending inventory, material and convesion (Round to two places, SN,.) 112 113 114 115 124 125 3,700 units 24,000 units 27,700 units 24,200 units (12.01) 3,500 units (12.02) 27,700.00 (12.03) 25.075.00 (12.04) 44,320.00 (12.05) (12.06) (12.07) (12.08) (12.09) (12.10) 126 127 Cost of the units transferred, material and convesion (Round to two places, S..) (12.11) 128 429