UB Health manufactures wheelchairs and has two departments, production department and testing department. This problem focuses on the production department. The process-costing system at UB Health has a single direct-cost category (Direct material) and a single indirect-cost category (Conversion cost). All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. When the production department finishes work on each wheelchair, it is immediately transferred to the testing department. Data for the production department for Oct 2014 are as follows:

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Chapter 8 Problems Problem 1 - Weighted Average vs. FIFO Beg. WIP Started Cost added during the year Physical Units Direct Material Cost + Conversion Total Cost = Cost 100 units $150 $ 25 $ 175 1,000 units $950 $500 $1,450 $1,100 $525 $1,625 At the end of the year, the company completed 1,000 units and had 100 units in the production process. Completion rates: Beg. WIP - 100% for DM, 30% for Conversion End. WIP - 100% for DM, 50% for Conversion Required) 1. Using WEIGHTED AVERAGE method, compute cost allocated to completed units and cost allocated end. WIP. 2. Using FIFO method, compute cost allocated completed units and cost allocated end. WIP. 1 Chapter 8 Problems Problem 2 - Process costing using Weighted Average method vs. FIFO method UB Health manufactures wheelchairs and has two departments, production department and testing department. This problem focuses on the production department. The process-costing system at UB Health has a single direct-cost category (Direct material) and a single indirect-cost category (Conversion cost). All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. When the production department finishes work on each wheelchair, it is immediately transferred to the testing department. Data for the production department for Oct 2014 are as follows: Beg. WIP Started during Oct. Completed Total costs added Physical units 5,000 units 20,000 units 22,500 units Direct Material $1,250,000 Conversion Costs $402,750 $4,500,000 $2,337,500 Completion rates Beg. WIP: 100% for direct materials; 60% for conversion costs End. WIP: 100% for direct materials; 70% for conversion costs Required) 1. Complete each of the following process-costing steps. a. Physical flow of units b. Equivalent units c. Summarize costs d. Determine cost per equivalent unit e. Determine Cost of goods completed and WIP ending balance 2. Prepare journal entries to update the WIP account and record the transfer of completed goods. 2