Self-Study Problem 6-1 (Algo) Weighted-Average Method versus FIFO Method [LO 6-2, 6-4, 6-5] Smith Electronic Company's chip-mounting production department had 300 units of unfinished product, each 50% completed on September 30. During October of the same year, this department put another 900 units into production and completed 1,000 units and transferred them to the next production department. At the end of October, 200 units of unfinished product, 70% completed, were recorded in the ending Work-in-Process Inventory. Smith Electronic introduces all direct materials when the production process is 50% complete. Direct labor and factory overhead (i.e., conversion) costs are added uniformly throughout the process. Following is a summary of production costs incurred during October: Direct Materials Beginning work-in-process Costs added in October Total costs Conversion Costs $ 3,375 4,100 $ 7,475 $ 8,400 $ 8,400 Required: 1. Calculate each of the following amounts using weighted average process costing: a. Equivalent units of direct materials and conversion. b. Equivalent unit costs of direct materials and conversion. c. Cost of goods completed and transferred out during the period. d. Cost of Work-in-Process Inventory at the end of the period. 2. Prepare a production cost report for October using the weighted average method. 3. Repeat requirement 1 using the FIFO method. 4. Repeat requirement 2 using the FIFO method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 1. Calculate each of the following amounts using weighted average process costing: a. Equivalent units of direct materials and conversion. b. Equivalent unit costs of direct materials and conversion. (Round intermediate calculations to 2 decimal places.) c. Cost of goods completed and transferred out during the period. (Round intermediate calculations to 2 decimal places.) d. Cost of Work-in-Process Inventory at the end of the period. (Round intermediate calculations to 2 decimal places.) Show less Direct Materials Conversion a Equivalent units b. Equivalent unit costs c Cost of goods completed and transferred out d. Cost of work-in-process Required 1 Required 2 > Required 1 Required 2 Required 3 Required 4 Prepare a production cost report for October using the weighted average method. (Round your answers to the nearest whole dollar amount. Round "Cost per equivalent unit" to 2 decimal places.) SMITH ELECTRONIC COMPANY Chip-Mounting Production Department Weighted-Average Production Cost Report Production Quantity Information Step 1: Analyze Flow of Physical Step 2: Calculate Equivalent Units Units Completion Direct Physical Units Conversion Percentage Materials Input Beginning work-in-process inventory Direct materials % Conversion % Started this period Required 1 Required 2 Required 3 Required 4 Repeat requirement 1 using the FIFO method. (Round "Cost per equivalent unit" answers to 2 decimal places.) Direct Materials Conversion a. Equivalent units b. Equivalent unit costs c. Cost of goods completed and transferred out d. Cost of work-in-process SMITH ELECTRONIC COMPANY Chip-Mounting Production Department FIFO Production Cost Report Production Quantity Information Step 1: Analyze Flow of Physical Units Step 2: Calculate Equivalent Units Conversion Costs Physical Units Direct Materials Input Beginning work-in-process inventory Completion percentage Direct materials, 096 Conversion, 50% Started this period Total units to account for Output Completed Ending work-in-process inventory Completion percentage Direct materials, 100% Conversion, 70% Total units accounted for Total work performed to date Beginning work-in-process inventory Total work performed this period (FIFO equivalent units) Unit Cost Determination Conversion Costs Total Ending Work- in-Process Total Step 3: Determine Total Costs to Account for Flow Direct Materials Beginning work-in-process inventory Current cost Total costs to account for Step 4: Compute Unit Costs Cost per equivalent unit Cost Assignment Step 5: Assign Total Manufacturing Costs Completed and Transferred Out Units completed and transferred out Beginning work-in-process Current cost to complete Materials Conversion Total from beginning work-in-process Units started and finished Total cost completed and transferred out Ending work-in-process Materials Conversion Total costs accounted for