Answer:
<em><u>Units to be accounted for:</u></em>
Beg WIP 300 units
started 2700 units
Total 3,000 units
<u>Equivalent units </u>
physical materials conversion
tranferred 2,850 2,850 2,850
ending 150 150 (20%) 30
total 3,000 2,700 2,880
<u>Cost to be accounted for:</u>
materials conversion
beg WIP 0 576
incurred 0 10,800
Total 0 11,376
<u>Equivalent unis cost</u>
materials zero
conversion: $11,376 / 2,880 = $3.95
Cost assigned for:
Transferred units
2,850 units x 3.95 = 11,257.5
ending work in process units
30 units x 3.95 = 118.5
Total cost to be assigned for 11,376
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<em><u>Notice:</u></em> Total cost to be asisgned for and assigned cost are the same.
Explanation:
1) We count the physical units
2) Then, we solve for the equivalent units which, under weighted average are:
transferred units + completion on ending work in process.
3) Now, we solve for equivalent unit cost:
for materials, this is zero are there is no cost associaed with.
4) Finally, we made the cost assignment which, should match the beginning WP cost and the incurred cost during the period.
