Process Costing using the Weighted-Average Method 1. Compute the equivalent units of production using the weighted-average method. 2. Compute the cost per equivalent unit using the weighted average method. 3. Assign costs to units using the weighted-average method 4. Prepare a cost reconciliation report. KOS ? x . HOME Process Costing using the Weighted-Average Method - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW - 5 Sign In FILE INSERT Paste IU - 23 - A Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles B63 1 Hayword, Inc. uses weighted average costing and has two departments - mixing and packaging. 2 The following information relates to work in the mixing department for the month of July: 300 60% 40% 4 Work in process, July 1: 5 Units in process 6 Percent completed with respect to materials 7 Percent completed with respect to conversion 8 Cost in the beginning inventory: Materials cost 10 Conversion cost 11 Units started into production during the period 12 Costs added to production during the period: 13 Materials cost 14 Conversion cost 15 Work in process, July 31: 16 Units in process 17 Percent completed with respect to materials Percent completed with respect to conversion $10,500 $6,750 6,200 $332,150 $407,645 450 40% 30% 20 Use the data to answer the following. Conversion 1. Compute equivalent units. Mixing Department Equivalent Units of Production Materials 26. Units transferred to the next department 27 Ending work in process: 28 Materials 29 Conversion 30 Equivalent units of production 32 2. Compute cost per equivalent unit. Mixing Department Cost per Equivalent Unit Materials Conversion 36 Cost of beginning work in process $ 10,500 $ 6,750 37 Cost added during the period 332,150 407,645 38 Total cost $ 342,650 $ 414,395 39 Equivalent units of production 40 Cost per equivalent unit 42 3. Assign costs. + )... Sheet1 READY Attempt(s) ... + 100% Show Me Hint HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 AA 19 - A Paste Editing B I Cells U- Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard B63 Total Mixing Department Costs of Ending Work in Process Inventory and the Units Transferred Out Materials Conversion 46 Ending work in process inventory: 47 Equivalent units of production 48 Cost per equivalent unit 49 Cost of ending work in process inventory 51 Units completed and transferred out: 52 Units transferred to the next department 53 Cost per equivalent unit 54 Cost of units transferred out $17,250 739,795 $757,045 56 4. Prepare reconciliation. Mixing Department Cost Reconciliation 59 Costs to be accounted for: 60 Cost of beginning work in process inventory 61 Costs added to production during the period 62 Total cost to be accounted for 63 Costs accounted for as follows: 64 Cost of ending work in process inventory 65 Cost of units transferred out 66 Total cost accounted for ) ... Sheet1 ... READY Attempt(s) BIO - Hint Show Me FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In M Paste B I U. 3 A Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles Clipboard B63 56 4. Prepare reconciliation. Mixing Department Cost Reconciliation 59 Costs to be accounted for: 60 Cost of beginning work in process inventory Costs added to production during the period 62 Total cost to be accounted for 63 Costs accounted for as follows: 64 Cost of ending work in process inventory 65 Cost of units transferred out 66 Total cost accounted for $17,250 739,795 $757,045
