Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments

Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.

The second department (Polishing) had the following physical flow schedule for December:

Units to account for:
Units, beginning work in process	4,000	(40% complete)
Units started	?
Total units to account for	?
Units accounted for:
Units, ending work in process	8,000	(50% complete)
Units completed	?
Units accounted for	?

Costs in beginning work in process for the Polishing Department were direct materials, $4,000; conversion costs, $7,000; and transferred in, $9,000. Costs added during the month: direct materials, $33,000; conversion costs, $47,000; and transferred in, $39,000.

Required:

1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. Enter percentages as whole numbers.

Fordman Company Schedule of Equivalent Units For the month of December

	Direct Materials	Conversion Costs	Transferred In
Units completed
Ending WIP:
x %
x %
Total equivalent units

Feedback

To calculate equivalent units, weighted average counts prior-period output in BWIP as belonging to the current period. So all completed units are treated as output of the current period.

2. Compute the unit cost for the month. If required, round your answer to the nearest cent. $ per equivalent unit