Answer:
Beginning 22,000
Started 60,000
Total units accounted for by the Department 82000
Units to be assigned costs:
Physical Units Materials Conversion
Beginning 22,000 17,600(80%) 6,600(30%)
Started and completed 36,000 36,000 36,000
transferred 58,000 58,000 58,000
ending 24,000 12,000(50%) 2,400(10%)
Total units 82,000 70,000 60,400
(weigthed average)
Equivalent Cost:
Direct Materials Conversion
Total cost $433,300.00 $434,880.00
Total equivalent units 70000 60,400
Cost per equivalent unit $6.19 $7.2
Costs charged to production:
Cost allocated to completed and partially completed units:
Explanation:
We add beginning and transferred-in to get total physical units
then, we apply the percentagge of completion and calcualte the equivalent units
which is under weigthed average method:
transferred-out units + percentage of completion in ending WIP
then, we calculate the equivalent cost per unit.
Last, we do the cost reconciliaton.