Solution:
Weighted-Average Method:
1. Equivalent units of production
Materials Conversion
Transferred to next department' 353,000 353,000
Equivalent units in ending work in process
Materials: 27,000 units x 100% complete 27,000
Conversion: 27,000 units x 90% complete 4,300
Equivalent units of production 380,000 357,300
*Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 67,000 + 320,000 - 34,000 = 353,000
2. Cost per equivalent unit
Materials Conversion
Cost of beginning work in process $ 98, 800 $ 44,000
Cost added during the period 513, 830 242, 130
Total cost (a) $612,630 $ 286,130
Equivalent units of production (b) 380,000 357,300
Cost per equivalent unit (a) ÷ (b) $1.61 $ 0.80
3. and 4.
Cost of ending work in process inventory and units transferred out
Materials Conversion Total
Ending work in process inventory:
Equivalent units 27,000 4,300
Cost per equivalent unit $ 1.61 $ 0.80
Cost of ending
work in process inventory $ 43,470 $ 3,440 $ 45,910
Units completed and transferred out:
Units transferred to the 353,000 353,000
next department
Cost per equivalent unit $ 1.61 $ 0.80
Cost of units completed and
transferred out $ 568,330 $ 282,400 $850,730
5. Cost Reconciliation:
Cost of beginning work in process inventory ($ 98, 800+ $44,000 ) = $142,800
Costs added to production during the period ($ 513, 830+ $242, 130 ) = $755,960
