Process costing Example- Using Weighted average method

Work in process, March 1: 20,000 units

Cost

Materials:

100% complete.

$ 50,000

Conversion:

10% complete.

7,200

Units started into production in March:

30,000 units

Units completed and transferred out in March:

40,000 units

Work in process, March 31:

10,000 units

Materials

100% complete.

Conversion

50% complete.

Costs incurred during March

Materials cost

90,000

Conversion costs:

Direct labor

$ 86,000

Applied manufacturing overhead

107,500

Total conversion costs

193,500

Total costs to account for

$ 340,70